Realty investments happen only in the budget housing segment: CBRE
According to CBRE’s India Residential Market View report, the demand for housing across leading cities remained subdued in the first half of 2014. Due to the high pricing of the properties and high lending rates from the banks and financial institutions, the home buyers are not taking the plunge to make that investment.
The home buyer preferences remained focused on the secondary and emerging micro-markets of the leading cities. The report also mentioned that the residential districts across the NCR, Hyderabad and Kolkata witnessed stagnation in sales transactions. The growth of commercial activity and the growing influx of IT professionals pushed housing demand in Bengaluru and Chennai.
Housing supply remained largely confined to affordable and low-income segments during the first half of the year. In the last few years post-recession, the salaries of employees have not increased. New job opportunities have been less and the salary hikes were very nominal. The inflation had played havoc in the household budgets of the common man and the surplus income was very minimal for the salaried class. Hence the investments were more towards the budget segment.
The largest quantum of new launches was observed in the mid-segment and budget segment, catering to the rising demand for affordable housing in the country. The report also quoted that the housing prices in the premium and mid-end, high-end segments in the NCR fell by about 4-8 % owing to low demand during H1 2014.
Source- Deccan Chronicle
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