Knight frank a global property consultancy launched the seventh edition of its flagship half-yearly report -India Real Estate. The data was collected from the Real Estate Regulatory Authority (RERA),of residential properties across eight cities and office space across six cities.
According to report after demonetization the residential launches crash 41%, lowest in seven years, the sales volume down by 11%. Is the lowest first-half sales in the past 5 years. In office space sector transaction fall by 10% but Hyderabad and Bangalore has strongest rental growth at 14% and 8% year on year respectively.
"Until recently recognized as one of the most resilient residential markets in the country, today the market is reeling under pressure. However, things have started looking up slightly in 2017 and although the figures are still restrained, marginal improvements we observed in the number of new launches and sales at 5% and 4% respectively in H1 2017 on YoY basis. A significant chunk of new launches in H1 2017 lies in the INR 25-50 lakh range, a welcome development given the government's focus on the affordable housing sector. Moreover, the inclusion of Bengaluru in the Smart City list is expected to have a far reaching impact on the residential market in the forthcoming years, as that would lead to improved infrastructure in the city. " said Shantanu Mazumder, Director -Bangalore.
"On the office market front, 5.8 mn ( million square feet) of transaction depict a slight dip, signaling moderate activity compare to previous years. This decline could mainly be attributed to dearth of ready office spaces that forestalled potential occupiers looking to expand. Another factor is the tepid growth the IT/ITeS sector - the key demand driver of the office market in Bangalore. On the new completions front, the city witnessed the infusion of 3.7 mn sq ft of office space in H1 2017, which is slightly better than the quantum of new completions in h2 2016. However, this figure s considerably less in proportion to the demand observed in the recent periods. While the IT/ITeS share is gradually reducing due to the advent of newer service sectors, taken up of space by co-working companies is a trend to watch out for" he added
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, it has more than 14000 people operating from 413 offices across 60 countries.
According to report after demonetization the residential launches crash 41%, lowest in seven years, the sales volume down by 11%. Is the lowest first-half sales in the past 5 years. In office space sector transaction fall by 10% but Hyderabad and Bangalore has strongest rental growth at 14% and 8% year on year respectively.
"Until recently recognized as one of the most resilient residential markets in the country, today the market is reeling under pressure. However, things have started looking up slightly in 2017 and although the figures are still restrained, marginal improvements we observed in the number of new launches and sales at 5% and 4% respectively in H1 2017 on YoY basis. A significant chunk of new launches in H1 2017 lies in the INR 25-50 lakh range, a welcome development given the government's focus on the affordable housing sector. Moreover, the inclusion of Bengaluru in the Smart City list is expected to have a far reaching impact on the residential market in the forthcoming years, as that would lead to improved infrastructure in the city. " said Shantanu Mazumder, Director -Bangalore.
"On the office market front, 5.8 mn ( million square feet) of transaction depict a slight dip, signaling moderate activity compare to previous years. This decline could mainly be attributed to dearth of ready office spaces that forestalled potential occupiers looking to expand. Another factor is the tepid growth the IT/ITeS sector - the key demand driver of the office market in Bangalore. On the new completions front, the city witnessed the infusion of 3.7 mn sq ft of office space in H1 2017, which is slightly better than the quantum of new completions in h2 2016. However, this figure s considerably less in proportion to the demand observed in the recent periods. While the IT/ITeS share is gradually reducing due to the advent of newer service sectors, taken up of space by co-working companies is a trend to watch out for" he added
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, it has more than 14000 people operating from 413 offices across 60 countries.
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