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09 February 2010

Demand-starved realty sector to get boost in 2010

The year 2010 appears to have brought cheers to the demand-starved realty sector. With signs of economic recovery emerging in the country, the real estate sector has been predicted to see increased business activities. According to global real estate consultant Cushman & Wakefield, India cities would witness a strong-end user demand for commercial real estate in 2010 with New Delhi, Mumbai and Bangalore leading the pecking order. These cities would see a combination of improving sentiments with increased expansion of businesses that eventually favour the commercial landlords. On the residential realty side, IndiaProperty.com has found via a survey that around 56% would show interest in buying a house. Also, Mumbai and Chennai have emerged as the favoured property investment destinations with Bangalore being the third favoured destination.

The Cushman & Wakefield Economic Pulse said most of the cities would enter a bottoming phase in terms of rents this year. “The year 2010 is also shaping up to be a strong year for real estate investment. With demand from real estate end users returning, we think investors in core real estate assets will start to aggressively explore opportunities to deploy their funds. This demand will be underpinned by the supportive monetary policy that most Asia-Pacific economies will adopt in most of 2010,” the report says.

IndiaProperty.com, the site that offers comprehensive property resources, conducts online surveys every quarter to get first-hand feel of the attitudes and preferences of property seekers value in the real estate sector.

Of the 1,500 individuals surveyed, 56% respondents consider making a property investment in the next 6 months. Of those surveyed, 46% prefer 2BHK, 23% 3BHK while 20% prefer to buy an independent house. Also, 10% of people are ready to invest in property worth Rs 75 lakh. As many as 33% of people assume property rates will remain the same for 6 months and 24% rates are likely to increase by 10% in the next 6 months.

According to Cushman & Wakefield, it was feared that massive unemployment would reverse the urbanisation trend of major developing cities in Asia as lack of jobs forces migrant workers to return to their rural hometowns. Even under such adverse conditions, studies have shown that there is no conclusive evidence of such a drastic structural reversal.

The latest residential market review by Knight Frank, 367,000 units (equating roughly to 533 m-sq ft residential space) are expected to come up across seven...
Source:Financial Express

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Comments

# Divita Sharma said:

The ever increasing population of Mumbai demands for both owned and rented accommodations. Many of the real estate builders are striving to bridge between demand and supply gap.

One of the projects that I have come across is Global city, Virar based project being built jointly by Rustomjee and Evershine Builders. With large area of development, Global city will be housing 15000 families. They also intend to provide amenities like educational institutions, hospital, large playground and a clubhouse with Jacuzzi, hi-tech gym, game courts and banquet hall.

With the demand for housing, suburbs are turning out to be the new dream destination for Mumbaikars.

21 July 10 at 11:33 AM
# Palazo said:

I like the post and its really contain good amount of information about property in India

11 October 10 at 3:14 PM
# hiamnshu said:

The latest residential market review

11 October 10 at 7:11 PM
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