From ET Realty
MUMBAI: New residential launches and sales declined sharply in 2015, the lowest since 2010 across top eight property markets of India. While the sales volume during the year was similar to that in 2014, new launches fell sharply, by 21%, said a Knight Frank India report.
Mumbai property market witnessed the sharpest drop with 36% in new residential property launches during the year, followed by 27% and 20% decline in Bengaluru and National Capital Region, respectively.
“2015 for Indian real estate had both the good and bad news. While the office market grew from strength to strength, residential did not perform as per expected. Office market saw a record absorption at 40.4 million sq ft; highest since 2012,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India. “Residential on the other hand, continue slowdown with launches at a five year low, despite the festive season. Sales in 2015 were lower than 2014 levels. Despite the 125 bps rate cut by RBI, demand did not see an uptake. Our outlook for 2016 remains muted. To further revive the demand, it is important to transmit the benefits of the rate cuts to consumers.”
Vacancy levels for commercial spaces touched record 8-year low to 15.8% in 2015 from 17% in 2008 after peaking out in 2012 at 21%.
According to Baijal, supply of quality office space is now a concern with vacancy levels moving to an eight year low and firming up of rentals.
Realty market in Mumbai Metropolitan Region remained stagnant as reforms failed to cheer and housing consumption moving to pre-2014 general election stage, said Knight Frank India.