Identified the top six cities in the country are expected to go up 26 per cent home sales in the second half of 2014 as compared to a year ago, according to a research report by property advisory firm Knight Frank.
And in the first half the home buyers have faced the negativity due to inflation, high interest, slow economy and even the political disturbance. New lunches in this period trim down by 32 per cent, sales volume was down 27 per cent.
Above all, with the stable government at the centre and concession for the housing sector in interim budget and even other measures has lead up to positivity, there is a signs that the tide might be turning.
In fact, Bangalore and Mumbai are expected to lead the recovery in sales volume with 26 per cent and 47 per cent respectively in the second half of the existing year, by the half yearly report by Knight Frank.
New lunches are supposed to rise only 5 per cent in the next 6 months as developer may like to focus on their unsold homes to be sold out over the quarters as soon as possible.
On the other hand, NCR (National Capital Region) saw a major drop of 37 per cent in the home sales in the first six months of the years to almost 28, 500 units compared to 45,300 units a year ago. Moreover, new launches fell down by 43 per cent at 35,500 units during the period but despite the lower launch, there were 167,000 unsold units in the NCR market in June and possibly take two years more to get into stable position.
“ The government’s plan to perk up economy growth of the country seems to have stuck the right cord among investors and we notice a substantial chance in the sentiment for the better,” added by Shirshir Baijal, chairman and managing director of Knight frank.
Demand in the Mumbai drop by 25 per cent, in the first half of 2014 compared to the year ago, entire new launches were down 38 per cent, added by Knight frank. And Mumbai Metropolitan Region has around 213,742 unsold area, which will take around 3 years to stable
The report, expects uptick in the Mumbai property market with four significant infrastructure projects coming up in the city including the part opening of monorail system, the commissioning of Metro Rail and the Eastern freeway.
And the Bangalore as a market has seen healthy demand for homes in spite of the slowdown however the momentum has somewhat slackened in 2014.
In contract with the housing market, the office market has seen an enhancement in its destiny. Additionally, vacancy levels have come from 21 per cent to 19 per cent in the second half of 2014. The office space in the top six cities has boosted from 14.7 million sq.ft in the second half of 2012 to 17.9 million sq.ft in the other half.
Knight Frank forecasts that will boost to 18.7 sq.ft in the second half of 2014. “Full 2014, we expect absorption to touch 36.5 million sq.ft a fly of 8 per cent from the 33.9 million sq.ft reported in 2013”.
