The analysts have predicted that the residential property in the country is slated for growth and there is likely to be a price growth and increased demand. This is unlike the situation in the real estate in the year 2013 which saw a difficult phase.
Owing to slow economic growth and high borrowing costs, the demand for residential property last year was very less.
According to the chairman and head of Jones Lang LaSalle India, he stated that Pan-India residential real estate costs were expected to increase at 10 to 12 per cent year-over-year [in 2014].
Moreover, owing to the general elections that will be held in the country in May, there might be some uncertainty. However, according to the property firm, the latter half of the year is slated to lead to an upswing in the market.
The chairman stated that after the elections, a huge burden of uncertainty that existed in the market will be laid to rest. He also added that owing to the general election, there might be some uncertainty in the initial two quarters of 2014. Besides, the macroeconomic conditions – both domestic and global are likely to affect the realty market in the year.
But after the general elections, the investors who are waiting for the right opportunity are expected to become active. Moreover, it is also likely that with upswing in absorption of residential units it will assist in reduction of the present huge inventory holdings of developers.
It was observed in Mumbai that builders were offering discount on home prices by up to 25 percent. According to Knight Frank, while approaching towards the end of last year, the inventory that was not sold came up to 130,000 units in the country. However, there is a positive news for the Indian realty market.
According to the managing director and chairman of Knight Frank India, he stated that presently Indian real estate seems very attractive.
He also mentioned that in the tier one cities, there was inundation. But in the tier two cities, there was some good news in the form that they have started flourishing with the industrial sectors and IT investing. Hence, it can be said that the Indian real estate is slated for utmost growth. It is also garnered to be a fact that owing to the vacant or undeveloped land, the Indian real estate is getting expensive. However, in most places the finished office or residential space is accessible at reasonable prices.
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Real estate News by AbuseDreamz
very good information
ReplyDeleteDue to the high interest rates of the banks. Middle class people are not preferring to buy flat in Home loan.
ReplyDeleteLot of residential projects launched in Bangalore. But the prices are not reaching to Normal middle class people.
ReplyDeleteMainly lot of builders are investing their money in Real estate sector only,
ReplyDeleteIt is good to hear that Mumbai builder's are offering 25 percent discount on the apartment prices. With this a lot of people will come forward and buy an apartment.
ReplyDeleteLast year was not as good for real estate market, as prices are going to touch sky its very difficult for middle class people to enter in real estate industry.
ReplyDelete