Indian property set for growth in 2015
The Indian property market is set for growth in 2015, according Knight Frank, after a year of correction and recovery.
After recording a 10 year low GDP growth in 2013, the Indian economy witnessed moderate improvement in 2014, says Dr Samantak Das, Chief Economist at Knight Frank India.
He forecasts a GDP growth of over 5 per cent by the end of 2015, boosted by the recent elections, which decisively voted in a stable government, already highlighting the importance of development and growth, both economically and within the real estate sector.
"The residential sector across major cities has shown a considerable decline in 2014," he writes on Knight Frank's blog. "Total sales in MMR, NCR, Bengaluru, Pune, Chennai and Hyderabad are expected to be in the range of 235,000 – 240,000 units by the end of 2014 thereby registering a sharp decline to the extent of 16 – 18 per cent compared to 2013. We expect these markets to improve only by the second half of the next calendar year and achieve a sales growth of around 15 per cent by the end of 2015.
"Office markets on the other hand have already shown a turnaround. Total office space absorption in these cities is expected to be around 37 mn sq ft by the end of this calendar year which will be 8 per cent more than that of 2013. Given the current global and domestic economic scenario, the government’s focus on growth along with the prevailing occupier sentiments, we expect the office space absorption to grow by nearly 12 to 13 per cent by the end of 2015."
For his full, in-depth forecast, click here.