What is in Store for India's Realty Market in 2013?

Bangalore: The real estate market of the country is expected to pick up in 2013. According to a report released by property consultant, Knight Frank India, the realty market will improve due to the change in policy and regulatory environment, which is likely to create a positive impact on the sector, reports Arundhati Ramanathan of Live Mint.

The coming year 2013 may change the face for real estate sector if Parliament passes regulation and land acquisition bill, which is expected to enhance the market sentiment. Also, the demand for commercial real estate segment will increase with the approval of foreign investments in multi brand retail in India, said Knight Frank.

However, this year, the real estate market witnessed slow home sales and increase cost of construction and interest rates, which in-turn have brought disappointment among both developers and end-users.

Recently, the property consultant released a report where 25 topnotch real estate companies of India have observed 4 percent decline in cumulative revenues, which is 67.44 billion in the second quarter that ended September 30.

According to the report, home buyers have preferred projects that offered innovative amenities compared to basic facilities, at a good price. In housing segment, projects that are well accepted among potential home buyers were projects that priced between 4000 and 5500 per square feet. The demand for such projects were mainly came from places like Navi Mumbai, Noida and North Bangalore. In central Mumbai, projects of prominent developers that priced between Rs 16000 and Rs 19000 per square feet, witnessed healthy demand.

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Indian property market in a 'forgettable' year

India's investment-grade real estate market has grown 8.6% to $173bn in the past 15 months following a 58% increase in 2011, according to Jones Lang LaSalle.

Mumbai-based senior research manager Hariharan Ganesan attributed the slowdown to a recent rise in input costs and "unenthused" macroeconomic investor sentiment. The result has been fewer developments initiated.

Ganesan contrasted recent meagre supply with the steep increase in new developments from $101bn in 2010 to $160bn last year. He said in a note: "The country's real estate market is traversed from a great deal of positivity [in 2010] to uncertainty.

"It is hard to deny that it has been a forgettable year."

Commercial developments have been particularly hit by both macro uncertainty and sector-specific factors. Under-construction office assets account for 78% of India's commercial real estate market, currently valued at $41.6bn.

Mumbai, Delhi and Bangalore accounted for 67% of the market value of commercial office space under construction, with 17% accounted for by second-tier cities Chennai, Pune, Hyderabad and Kolkata.

Third-tier cities accounted for only slightly less (16%), up from 9% in 2010 largely as a result of lower real estate costs, said Ganesan.

Meanwhile, shopping centres decreased in number but increased in size in 2012, which kept the Q3 market value of retail assets at the same level as the previous quarter. In contrast, investment-grade residential construction, valued at $132.2bn in Q3, has almost doubled since 2010. Delhi dominates volumes, although Mumbai contributes greater market value.

Ganesan said residential had proved particularly resilient for developers and investors because of high demand for housing and the fact it was self-liquidating.

Author: Shayla Walmsley

For the original post visit: http://www.ipe.com/asia/indian-property-market-in-a-forgettable-year_48815.php#.UMHUuZEWbDs

Indian property market reaches $170bn in 'forgettable' year

INDIA – India's investment-grade real estate market has grown 8.6% to $173bn (€133bn) in the past 15 months following a 58% increase in 2011, according to Jones Lang LaSalle.

Mumbai-based senior research manager Hariharan Ganesan attributed the slowdown to a recent rise in input costs and "unenthused" macroeconomic investor sentiment.

The result has been fewer developments initiated.

Ganesan contrasted recent meagre supply with the steep increase in new developments from $101bn in 2010 to $160bn last year.

He said in a note: "The country's real estate market is traversed from a great deal of positivity [in 2010] to uncertainty.

"It is hard to deny that it has been a forgettable year."

Commercial developments have been particularly hit by both macro uncertainty and sector-specific factors.

Under-construction office assets account for 78% of India's commercial real estate market, currently valued at $41.6bn.

Mumbai, Delhi and Bangalore accounted for 67% of the market value of commercial office space under construction, with 17% accounted for by second-tier cities Chennai, Pune, Hyderabad and Kolkata.

Third-tier cities accounted for only slightly less (16%), up from 9% in 2010 largely as a result of lower real estate costs, said Ganesan.

Meanwhile, shopping centres decreased in number but increased in size in 2012, which kept the Q3 market value of retail assets at the same level as the previous quarter.

In contrast, investment-grade residential construction, valued at $132.2bn in Q3, has almost doubled since 2010.

Delhi dominates volumes, although Mumbai contributes greater market value.

Ganesan said residential had proved particularly resilient for developers and investors because of high demand for housing and the fact it was self-liquidating.

Author: Shayla Walmsley

For the original post visit: http://www.ipe.com/realestate/indian-property-market-reaches-170bn-in-forgettable-year_48769.php#.UL7t6yLQvIU