while both retail and real estate sectors took a beating during the slowdown, both are expected to perform much better in 2010, says Savreen Gadhoke
But in the process of getting over-excited over improvement in market affairs, the last two quarters saw real estate players raise prices of housing properties by 15-20%, thereby hampering demand once again. However, as Puri agrees, this is nothing to worry about as “for 2010, residential real estate demands appear to be the most promising. Residential will continue to lead the revival phase, led on by a lowering of mortgage rates and price rationalisation in the newly launched projects. It also looks the most positive in terms of funding. There is liquidity available for certain typologies and formats, most especially in the affordable housing segment.” The non-residential segment, which depends greatly upon overseas funding will witness a slower recovery as Vivek Mittal, CEO, Realty Stocks, says, “The office real estate space has been, to quite a measurable extent, hampered by the turbulence in the global economy, which has put a brake on the expansion of multinationals in India...” While the drying up of FDI in the retail space did play the spoilsport as far as the non-residential real estate segment is concerned, there is hope still. That the office space will bounce back is true. But unlike the residential space, it will need time beyond 2010 to regain lost ground.
THE SLOWER DRIVE...
he global retail sector will struggle for most part of 2010 due to high unemployment rates (in America & Europe) and stringent credit conditions. Fall in exports to the West will increase retail inventory in the Japanese market. There is however a chance of slow improvement, as companies will indulge in M&A activities. The growth of the IT/ITeS sector in the developed nations will primarily drive the demand for commercial real estate space.
Read more....
But in the process of getting over-excited over improvement in market affairs, the last two quarters saw real estate players raise prices of housing properties by 15-20%, thereby hampering demand once again. However, as Puri agrees, this is nothing to worry about as “for 2010, residential real estate demands appear to be the most promising. Residential will continue to lead the revival phase, led on by a lowering of mortgage rates and price rationalisation in the newly launched projects. It also looks the most positive in terms of funding. There is liquidity available for certain typologies and formats, most especially in the affordable housing segment.” The non-residential segment, which depends greatly upon overseas funding will witness a slower recovery as Vivek Mittal, CEO, Realty Stocks, says, “The office real estate space has been, to quite a measurable extent, hampered by the turbulence in the global economy, which has put a brake on the expansion of multinationals in India...” While the drying up of FDI in the retail space did play the spoilsport as far as the non-residential real estate segment is concerned, there is hope still. That the office space will bounce back is true. But unlike the residential space, it will need time beyond 2010 to regain lost ground.
THE SLOWER DRIVE...
he global retail sector will struggle for most part of 2010 due to high unemployment rates (in America & Europe) and stringent credit conditions. Fall in exports to the West will increase retail inventory in the Japanese market. There is however a chance of slow improvement, as companies will indulge in M&A activities. The growth of the IT/ITeS sector in the developed nations will primarily drive the demand for commercial real estate space.
Read more....
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
