Residential real estate to pick up by 26 %: Knight Frank
After the new Government took over at the Centre, the buyer sentiment has improved which will result in a 26 % growth in residential property sales in the second half of this year compared with same period last year. This data was published by real estate consultant Knight Frank India on Tuesday.
According to its half-yearly report titled ‘India Real Estate Outlook’, sales volume in the residential market dropped by 27 %. This drop has happened in the first half of 2014 compared with the same period last year. The past two years were extremely bad for the real estate market and the demand and supply in the residential market in the top six cities like Mumbai, National Capital Region, Bangalore, Chennai, Hyderabad, and Pune have been witnessing volatility.
The report also mentioned that all the cities saw a steep fall in absorption, in the range of 14-37 % during first half of 2014. The drop in absorption was the lowest for Bangalore and highest for NCR. Rajeev Bairathi the Executive Director of North and Capital for Knight Frank India expressed optimism and said that with a new Government at the Centre, and US and European economies improving, the industry has already bottomed out and the scenario will improve.
Sales volume is expected to grow 26 % in the second half of this year compared with same period last year. Mumbai will be at 49 % and Bangalore at 26 % will show the path to the other cities. New launches in the residential market fell by 32 percent in the first half of 2014 compared with the same period last year. However, they are expected to grow only 5 percent in the next six months.
The unsold inventories are slowly getting sold. In terms of price appreciation, Bangalore led the pack in the first half of 2014 with 11 % growth, while Mumbai is expected to race ahead in the second half of the year with 10 percent higher prices compared with the corresponding period last year.
Pune emerged as the most affordable city to live in the first six months of this year as 83 % of the new launches were below Rs 50 lakh. Mumbai, predictably, was the most expensive market with 34 % of the launches above Rs 1 crore.
Source- The Hindu Business Line
India Real Estate Outlook, Knight Frank, Knight Frank India, New government, Residential real estate
