Indian
real estate is at the tip of a recovery as Knight Frank have reported of a
visible turn around in sentiment since the general elections and a pro-housing
Union Budget.
According
to Knight Frank, Mumbai's housing market is forecasted to lead the recovery in
the Indian real estate market with a 10% price appreciation during the second
half of this year, plus a staggering 49% rise in sales. The report claims
demand in Mumbai had slipped by 25% year-on-year, resulting in a pile-up of
2.13 lakh unsold homes during the first half of 2014. Knight Frank believes the
remaining half of the year will reboot the trend.
Prospects
also seem to be looking up for India's second largest property market - the
national capital region. Regardless of an unsold inventory of 1.67 lakh homes,
developers in the region have continued to launch projects and have kept prices
the same. The weighted average price of Rs 4500 per square feet is expected to
remain stable throughout all of 2014.
Bangalore,
India’s IT capital, is another housing market of the country to outperform for
a recovery. According to the Knight Frank report, the Bangalore market
appreciated at the most rapid pace of 11% during the former half of this year.
Hyderabad,
known as India's most affordable city, followed in second with a 9% price
appreciation. The revitalisation of Hyderabad's property market owes largely to
the back of Telengana's creation and the end of a long political strife.
