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The Realty Market of India: Present and Future

12.20.2013 · Posted in Others

 

Reviving realty market of India unfolds an optimistic scenario to the investors. Focusing on the passing year, 2013 came as a blessed relief to the property buyers as against 2012 which turned out to be relatively tough.

But what is the present realty supply and how different sectors tend to grow in future? Read on low here to gain a comprehensive insight and find answers to the realty queries.

Market Scenario in 2013

As compared to the previous year different real estate segments such as office space, residential, hospitality and hotel experienced a rise this year.

 

Residential Market: –

In 2012, macroeconomics factors played a significant role in weighing down the growth of residential properties. This led to marginal increase in property prices in important cities like Delhi, NCR, Mumbai and Hyderabad.

Contrary to what happened last year the realty market in 2013 depicted positive property scenario and welcomed investors from different walks of life.

The number of projects constructed and taken over by the end customers in the residential sector witnessed an upward toll. Cities like Ahmadabad, Bangalore and Pune experienced several new establishments at different locations.

Reports reveal that in future the residential property in 10 major cities including Mumbai, NCR, and Delhi will experience supply of 2.1 billion sq. ft. and approximately 67 percent or around 1.4 billion sq. ft. to come up by 2015, with Mumbai and NCR comprising 55% of the total supply.

Commercial Market:-

The year 2012 though experienced lean demand in the commercial sector but 2013 seems closing on a positive note. Several new properties were constructed and sold in the commercial sector. Cities like Noida, Delhi, Kochi, Chennai, Bangalore, Hyderabad, Mumbai, NCR, Pune and Chandigarh reflected positive scenario with numerous investors actively engaging in buying and selling properties.

But the market demand is still higher than the supply. CRISIL research indicates that of the total 444 million sq. ft. planned supply around 167sq. ft. will come up by 2013-2015, across 10 important cities. Of the total supply additions, 53% of supply will come in NCR, Bangalore and Pune.

Retail Sector:-

The market for retail real estate sector recouped well in last couple of years, in contrary to 2008-2009, when it jostled to gain traction due to oversupply. Though the rental lease has not experienced much rise but the increasing demand comes as a relief to the developers.

The increasing inclination of the population towards retail culture depicts future growth. It is anticipated that the total planned supply of retail spaces across 10 major cities will increase by 67 million sq. ft. out of which 38% percent to come up by the year 2013-2015.

By the year 2015, around 80 malls out of the total planned supply of 144 malls will be established at different locations out of which 15 malls will come in National Capital Region.

Hospitality Sector:-

Government of India undertakes several efforts to augment the health infrastructure across different states and aims to reach millions under PPP scheme. Renowned real estate companies of India have devised plans in sync with state governments to launch different health care projects.

Hotel Industry

Over the period of time government adopted several measures to increase tourism but the rise created huge demand for hotel projects.

Though different players have come up with quality developments but the market demand is still way higher than the supply. To meet the surge, several new projects will be undertaken in major cities and around 4800 new rooms will be added to the existing 46200 rooms across 12 potential tourist destinations of India.

 

Subhadra Bhadauria is a zealous writer for leading real estate site 99acres.com. She shares different posts on realty market and frequently updates the investors about the changes taking place in the sector. The writer completed her mass communication and engages herself in novel