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According to the real estate professionals, they opine that things will turn positive for the sector only in the second half of 2014, once the general elections are over. There will be clarity on the new government and businesses will start seeing investors.
When it came to the year 2013, it was a dull year for the real estate, when all asset classes —office, residential and retail properties — except some cities such as Bangalore witnessed a fixed decline in absorption.
Residential
In the first three quarters of 2013, absorption of residential units in most cities such as Delhi-NCR,Mumbai and Pune was on a declining mode.
According to chairman and country head of realty consultant Jones Lang LaSalle India (JLL), he stated that the year 2013 was a struggle for the Indian economy what with the poor macroeconomic conditions.
The chairman also went on to add that fence-sitting investors are likely to become active after the elections. Moreover, the increase in absorption of residential units will help minimize the currently large inventory holdings of developers. He also stated that residential prices are likely to raise 10-12 per cent during 2014.
Around 45 per cent of Mumbai’s under- construction properties are unsold, indicating stress in the realty market according to a recently released report by UK-based Knight Frank.
Office
According to a senior executive from a renowned realty, commercial real estate is dependent on individual and corporate earnings. And for this to pick up, these parameters have to pick up, he stated.
He also added that the pick-up in office properties is also dependent on how many banks you allow to open.
JLL states that vacancy rates in office properties are slated to shoot up from 18.2 per cent in 2013 to 19.2 per cent in 2014 owing to growth in supply, though absorption is expected to get moderated.
Retail
The year 2013 witnessed a 39 per cent jump in addition of mall spaces over the last year in spite of 18 malls being deferred by developers, stated a study by global consultant Cushman & Wakefield (C&W).
When it came to the year 2013, it was a dull year for the real estate, when all asset classes —office, residential and retail properties — except some cities such as Bangalore witnessed a fixed decline in absorption.
Residential
In the first three quarters of 2013, absorption of residential units in most cities such as Delhi-NCR,Mumbai and Pune was on a declining mode.
According to chairman and country head of realty consultant Jones Lang LaSalle India (JLL), he stated that the year 2013 was a struggle for the Indian economy what with the poor macroeconomic conditions.
The chairman also went on to add that fence-sitting investors are likely to become active after the elections. Moreover, the increase in absorption of residential units will help minimize the currently large inventory holdings of developers. He also stated that residential prices are likely to raise 10-12 per cent during 2014.
Around 45 per cent of Mumbai’s under- construction properties are unsold, indicating stress in the realty market according to a recently released report by UK-based Knight Frank.
Office
According to a senior executive from a renowned realty, commercial real estate is dependent on individual and corporate earnings. And for this to pick up, these parameters have to pick up, he stated.
He also added that the pick-up in office properties is also dependent on how many banks you allow to open.
JLL states that vacancy rates in office properties are slated to shoot up from 18.2 per cent in 2013 to 19.2 per cent in 2014 owing to growth in supply, though absorption is expected to get moderated.
Retail
The year 2013 witnessed a 39 per cent jump in addition of mall spaces over the last year in spite of 18 malls being deferred by developers, stated a study by global consultant Cushman & Wakefield (C&W).
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