Yes, residential sector in India has been stumbling under tremendous pressure since the past couple of years. In spite of a new government at the Centre and a couple of reforms but home buyer's sentiment has not yet lift up, due to issues such as stalled projects, unaffordable prices, delays in the completion of major infrastructure projects and low credibility of developers.
It is true Shantanu. Slowdown in demand in the residential market has resulted in a poor price performance over the last couple of years, with most cities not even able to increase even the inflation rate in the economy. While the weighted average price in the six major cities of India such as Mumbai, NCT, Bangalore, Pune, Chennai and Hyderabad that have appreciated in the range of 12% to 23% since 2012, consumer price inflation has increased by 24% during the same period as per the report.
Hi all, This report also shows that there has been a marginal drop in rankings of Mumbai and New Delhi from an investment prospects possibility whereas Bangalore has shown a remarkable improvement as it has moved up 5 positions over its last year's ranking (17th).
Right Somesh, Data shows that New Delhi ranks 2nd and Mumbai ranks 5th in the buy recommendation rankings for industrial / distribution properties among the 22 cities covered whereas Mumbai ranks 8th and 9th, respectively, for office and residential buy recommendations. These numbers, in a way, indicate that the investment prospect rankings of these cities could go up and push into the Top-10 bracket in the years to come.
This report clearly indicates that the flow in Bangalore's ranking to its technology industry and the availability of a large numbers of skilled labors have the key role to build up the expanding business backed startups.
@Somesh, The story in Bangalore is however different than that in Mumbai and Delhi, where even the huge amount of upcoming supply of commercial office inventory is not concerned to be a cause of concern, as it is expected to be matched by an equally high absorption rate. But the story is opposite in Delhi and Mumbai as the inventory pile-up is the major concern here.
Hi Supratim, As per the rankings of these cities as considered by investors showed a comprehensive study conducted by PricewaterhouseCoopers and Urban Land Institute.The study ranks Bangalore, Mumbai and New Delhi at 12th, 13th and 16th positions for investment prospects and at 15th, 13th and 11th positions for development prospects respectively, in the list of the 22 markets covered in the report.
Hi Sashidharan, The Indian foreign investment policy for the real estate sector through introduction of various relaxation procedures has increased the confidence of foreign investors and has helped India recover favor to be one of the preferred investment destinations in the Asia Pacific region.