Delhi NCR Real Estate - Delhi NCR Property

24/09/2016

02/07/2014

What To Expect From The property Market In this Year - 2014?

There is an overall slowdown in demand across India as has been experienced by industry players. Property prices and rentals are correcting which have led to the erosion in market capitalization of many listed players like DLF, Unitech etc.

The slowdown is aided by the fall in stock markets as wealth creation does not happen and there is lack of capital among investors to invest in real estate projects. Also, to adjust their share market losses, many investors are forced to sell off their real estate properties.

Other factors that have led to the slowdown is the increase in interest rates leading to higher costs. Also income levels have not risen in proportion to the increase in property prices thus forcing many potential buyers out of the market.

Also with rising input costs of steel, iron and building material, it has become unavailable for builders to construct properties at agreed prices. As a result, there may be a delay in project completion leading to financial constraints.

Many residential buyers are waiting a price correction before buying a property, which can affect development plans of builders.

Also with IT industry continuously experiencing a slowdown, there may be further constraints on residential as well as commercial demand since IT/ITES segment accounts for 65% of the total commercial demand.

So real estate players may continue to face liquidity concerns in future due to rising costs and unfavorable stock market conditions for further capital raising.

11/11/2012

Top Eight Cities in India to see Demand for 180 million sq ft of Office Space in next five years

The top eight cities in India are expected to see a demand for about 180 million sq ft of commercial office space in the next five years, says global real estate consultancy, Cushman & Wakefield, in a new report.

The total expected supply in these five years is 219.6 million sq ft, based on announced projects and the current pace of construction. This indicates a situation of oversupply in the coming few years.

The highest demand of 44 million sq ft will be in Mumbai over the next few five years followed by Bangalore with a demand for 31 million sq ft and then the NCR with 27.8 million sq ft. The top three cities will constitute approximately 57% of the total office space demand.

Ahmedabad is expected to have the lowest office space demand of approximately 7.8 million sq ft, while Kolkata will be at 8.4 million sq ft.

“Based on expected recovery of the economy, partly due to global recovery, but largely due to the positive signals being sent out by the central government to promote business investments, office space demand is expected to witness a positive growth of 10% in 2013 and 20% in 2014. This is, however, likely to reduce over the next two years (2015-16) drawing from the forecasts that predict a slowdown in global GDP,” says Sanjay Dutt, executive managing director, south Asia at Cushman & Wakefield

Mumbai is also expected to see the highest supply in the next five years with an estimated 52.6 million sq ft of fresh office space coming in. This is followed by NCR with 43.8 million sq ft of new space and and then by Bangalore with 31 million sq ft in the next five years.

The office market is expected to be oversupplied by approximately 21% in the period of 2012-16. The demand to supply gap is expected to be the highest at 40% in 2012 but will reduce to 6% by 2016