The festive season looks a bit subdued for property buyers this year. The price corrections that were anticipated in the primary cities have not materialized, at least not in the hoped-for magnitude.
Despite the strong probability of correction of residential property prices…
Much like in Bangalore, the primary catalyst for Pune’s residential real estate market are the Information Technology and Information Technology-Enabled Services sectors.
For working-class home buyers in Mumbai, there aren’t too many…
The fundamental aims of any residential property investment should be to maximise yield as well as capital gains and to reduce the risk as far as possible.
Mumbai saw a steep rise in property prices during the boom period of 2008. However, the economic slowdown in 2009 led to a property market crash which made itself very tangible in Mumbai in the first quarter of 2009, stabilizing by the middle of year and rising again between the 3rd and 4th quarters.
Residential sales in Hyderabad remained modest in 4Q10. Although the city witnessed many launches, sales did not pick up. Market sentiment, especially among investors, stayed low as political uncertainty persisted.
Kolkata is fundamentally a Tier II city, and its real estate market is not as volatile as those of the primary cities. Because of this, Kolkata’s residential property sector was not as seriously impacted by the nationwide slump in the real estate market as cities like Mumbai, Delhi, Pune or Hyderabad.
Real estate markets are inherently vulnerable to prolonged periods where prices deviate from their fundamental value. The features that contribute to this deviation are imperfect information, suboptimal financial markets and supply rigidities. Imperfect information causes buyers to either overestimate or underestimate the fundamental value of real estate assets.
The greener pastures are mostly defined with numbers and not execution capabilities or business model. For example, the absorption of office space has been upwards of 40 million square feet per annum for the last 3 years. The overall sentiments in this segment look bullish with PE investors also putting in money. As a matter of fact, even in retail real estate the PE investors are bullish and exploring even the Tier II cities having malls with good footfalls, brand mix and strong sales. This is what is enticing the residential developers looking for both the buyers as well as the capital investments.