Residential Real Estate of 2015
The upcoming 2015 will be no different than 2014 in case of residential segment of real estate firms. Atleast things will be same in metropolitan cities and single tier cities. The things will continue this way unless the property developers are thinking to cut down prices to certain extent where it is reasonable for buyers to own a house instead of leasing or renting it. The government has recently invested in the foreign directed real estate firms, property developers are well revived when it is all about funding. This will help them to cling to prices for a longer phase with a faint ray of hopes for having buyers. The will at last spill the beans and buy the houses with high priced rates. But holding on to prices will be quite helpful. In recent days, a brokerage house UBS illustrates that on an average prior sale were down by 50 per cent in the year 2014 while residential spaces are near about 7 year high on average basis.
Real estate consultancy Knight Frank reports that there are about 2.3 lakh houses in Mumbai that are still not sold. The situation is no better in Delhi-NCR where about 1.7 lakh houses are unsold. The sales were at a loss of 37 percent during the first quarter of the year. According to subjective evidence, we may conclude that sales were simply muted at the times of festival when buyers were reflected high prices. It is ironic but property prices were constant even when the stock market had been facing severe debacle in September, last year, while the bench mark directs to rally over 7 percent. In past days, there were direct relation between the stock market and the property and real estate market.
A rally in stock exchange market perpetually geared a similar up rise in property price as investors yielded profits from their stock transaction into real estate. This is dormant for a while by now. The main reason in this participation is not in the similar level as it was at the time of the bull run of 2004-2008.
Source:
Money Control
houses in Mumbai, Knight Frank, Knight Frank India, Knight Frank Research, Knight Frank's report, Residential real estate
