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Advice » News» Property market outlook rosy for 2012

Property market outlook rosy for 2012

Feb 24 2012 | 0 Comments | 1401 Views

Commercial space demand expected to drop by 15%

From 2011  to 2012,  the demand for office space in top seven cities including Mumbai  is expected to reduce from 35 million sq ft to 30 million sq. ft (source: Global property advisor DTZ) .  In  expensive  areas of  Mumbai (e.g. Nariman Point, Lower Parel, Worli-Prabhadevi, Bandra-Kurla Complex, Andheri, Powai, Navi Mumbai and Thane micro-markets) the occupancy rate and rents have remained low in 2011 (source: CB Richard Ellis) . Thus suppliers have kept properties away from the market and if  they are released  in 2012 it may put downward pressure on prices.
Good news is that it is still higher than the demand of  22 million sq. ft in 2009. Bad news is that the Euro crisis is the wild card; if the situation deteriorates then it will have negative ripple effect on the demand.
Read more at
http://tinyurl.com/7ay6v29

Property prices to remain stable or rise as demand picks up in 2012

Q4? 11 report from  Bank of America Merrill Lynch indicates  an  increase in property sales in cities like Bangalore, Chennai, Gurgaon, and Noida (an assertion endorsed by Confederation of Real Estate Developers' Associations of India, CREDAI).
This increase is taking place in spite of the fact that builders have resisted reducing prices on existing properties.  Mortgage lenders believe that with inflation under control and credit condition easing the home loan demand is expected to pick up.
The only fly in the ointment is the existing high inventory in big cities that may soften the price rise in 2012.
Read more at
http://tinyurl.com/85jzy5a

45% of the new projects in NCR, Mumbai, and Bangalore are delayed

Key highlights:
1.            NCR is the worst culprit with 77% delay
2.            Buyers believe the builders are not penalized enough for delays
3.            Builder site the delay in funding by lenders(due to tight monetary policy)  as the main reason
Read more at
http://tinyurl.com/74tz8p7

 


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