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...