Indian economy is witnessing decrease in GDP growth rate which has now become ha matter of concern for India real estate sector. The realty sector developers are under high debt and inflows from FDI have also become sluggish. It is expected that sales will further be dampened by the recent rise in home loan interest rates. In most of the cities residential sales have remained slow in year 2011 but demand for retail space and offices have been average. Many IT companies in coming year 2012 are looking forward to take advantage of commercial terms that is proposed by the developers of commercial office space.
It is estimated that demand will remain stable but the supply of office space is likely to outweigh the demand in most of the cities. Due to the uncertainty faced by the global market, corporate expansions are expected to decrease. The hike in interest rates by Reserve Bank of India and uncertainties in global market will make residential market cautious for short term.The absorption rate is also to be low and the realty sector will witness decline in new project launches. Due to low sales there will be just marginal rise in capital values.
No comments:
Post a Comment