Housing sales have dropped by 17 per cent across six cities with NCR seeing the sharpest drop in home sales, according to a Knight Frank India Real Estate Outlook.
Shishir Baijal, Chairman & Managing Director, Knight Frank India, said: “2014 has not been a great year for Indian real estate. It reflected a correction in stakeholder sentiments on the back of a slowing demand environment. Residential sales across the top cities have dropped in 2014. While sales volumes fell by 17 per cent, launches dropped by 28 per cent.”
Baijal said, “We expect 2015 to be the year of recovery and stabilisation. The current economic indicators look positive, though the real impact will only be felt by the second half of this year. A surprise rate cut from RBI has marked the beginning of the New Year and going forward, the Make in India campaign, REITs, FDI relaxation, and smart cities, among others, augurs well for giving a much needed boost to stakeholder sentiments.
The report said office markets across the top six cities have already shown a turnaround in 2014. Vacancy levels have been on a downward spiral since 2013. While absorption rose by 14 per cent, new completions contracted by six per cent during 2014. Vacancy levels in Bengaluru have already touched 10 per cent as of December 2014.
“We expect the city to clock single digit vacancy levels in the next six months. Growth in the office market is going to sustain owing to a strong revival in driver industries and recovery in the global economy,” he added.