Real estate Prices Will Keep Soaring in 2015-Knight Frank

Bangalore: The Real estate consultancy, Knight Frank Report says that; the Real estate prices will continue to rise higher in 2015. In spite of the slothful demand in residential property market over the last year, residential property prices are soaring. Hence; it’s the perfect time for homeowners and absolutely not for the potential home buyers.

In 2014, the residential sales have fallen by 17 percent in India’s top six cities. Generally, this drop down demand would drag the realty prices down, but the report says that prices are heading higher due to the sharp decline in new launches. On the other side; Mumbai property prices raised by an average of 10 percent where there is a 43 percent decline of new launches in 2014 and in 2015, the prices are expected to rise, but not at extreme level.

Samantak Das, Chief Economist and Director – Research, Knight Frank say that; “We predict that the residential sales of combined six India’s top cities will raise by 4 percent over the same period last year in the first half. But, the rate of new launches will still fall by 4 percent. Always there is an upward pressure on price. Nevertheless, we don’t see much significant increase in top six cities going forward”.

With the decline of vacancy levels from 19.6 percent to 17.5 percent, 6 percent drop of new launches and 14 percent up of absorption or demand in 2014. The commercial property, Rental and on sale prices are also going up along with residential property. Unless more development begins soon, the supply crunch will prompt a further climb in rental costs.

Viral Desai, Director of Occupier Solutions group said that; there is a balancing act with the good prop up from incentivize developers and government to accomplish more commercial real estate or else, rental values will go up by 10-15 percent in the next 12 to 15 months.

Knight Frank Says that it won’t happen overnight, the first half of 2015 will see some consolidations by developers and from the second half the actual transaction in sales can be seen.