Q3 Report On India's Residential Property Market Overview

City Market Prognosis

Mumbai’s residential market is foreseen to remain stable marked by low liquidity and high prices. Absorption in the luxury segment will remain under pressure. The pre-launches in the mid and low end segment will continue to have traction at the introductory prices. The recent hike in the floor space index of 3 for the redevelopment of cease buildings is expected to boost the city’s redevelopment projects to some extent and improve the overall supply situation over the long term. Overall capital values in the primary and secondary sales markets are expected to be under pressure in the short to medium term.

NCR region is thought to experience a more cautious investor approach due to upcoming political changes and economic slump, thus anticipating a rather stable demand with further plunging rental and capital values and late completions from 2009-2010 launches.

Pune, Bengaluru and Chennai continue to show a moderate demand of residential units. The IT / ITeS sector will remain the primary demand generator for mid-range residential properties. Considering the upright demand from end users and investors, capital and rental values are expected to increase by 2 – 5 percent in the near term. Demand in the Kolkata market is primarily driven by the mid- segment; due to this, capital values in the middle and affordable segments are likely to see marginal appreciation. A number of developers are planning to develop premium properties in prime locations of south central Kolkata.

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