Cushman & Wakefield predicts greater real estate growth in India
Property consultants Cushman & Wakefield are hopeful of further growth in the Indian real estate sector, going by governmental emphasis on smart city development and housing in general.
One of the leading property consultants in the country, Cushman & Wakefield has predicted better times for the real estate sector ahead. The market has remained dull all throughout 2014 in all metropolitan cities with unsold inventory levels rising drastically. However, it is hopeful of a rapid improvement in the next year owing to governmental measures that seem positive at the outset.
The new government has put greater emphasis on the housing sector in addition to development of a total of 100 smart cities. Relaxation of FDI investment norms is another big plus towards enhancing developer liquidity and swifter project turnarounds in the long run. All of these initiatives will go a long way towards reviving the fortunes of this pivotal business sector. Property price trends have largely been confusing across 2014 and Cushman & Wakefield has tracked a total of 8 cities in this aspect.
Some of the most important findings include the following:
- Property values were seen to increase at the rate of 5-13% in Bangalore as compared to 3-8% in Mumbai.
- Prices have appreciated to the tune of 4-10% in Chennai while Kolkata witnessed appreciation of only 1-5%.
- Pune properties appreciated by 2-15% all throughout the year while Delhi prices declined alarmingly by 2-11% owing to rising unsold inventory levels.
- Mid segment projects were emphasized upon by most developers and companies. Most projects announced throughout the earlier 3 quarters of the year witnessed a whopping 68% falling in this category. Pune, Bangalore and Kolkata witnessed high demand and increasing price levels in this category in these three quarters.
- High end property markets witnessed a steep decline especially in Delhi-NCR, Ahmedabad, Mumbai and Hyderabad and this was the segment which witnessed the lowest volumes of sales all across the country.
- Approximately 122, 000 units were announced throughout all eight metropolitan cities
Based on Cushman & Wakefield’s findings, real estate should get a timely boost in 2015 owing to governmental initiatives.
Source:
NDTV Profit
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