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The encouraging response to the lower housing, middle segment could lead to more such projects coming soon, increasing supply, according to a report

The second quarter was a tale of two halves. The first half continued pessimism has been characterized by the liquidity crisis because of high cost debt and the reluctance to invest money, leaving mad customers stalled projects, slipping revenues and demand low in all segments of real estate. The election result was one of the reasons for the feelings of improving the sector should form a stable government earlier than expected economic revival. In the second half of this quarter, the volume of home sales showed a marginal increase.

Small is huge

Low home in mid-segment continued to drive demand in home sales across the country, which is likely to improve and stabilize prices and buyers who expected the decrease in the rate finally choose to buy a property, said Colliers International Overview of the real estate market for the second quarter of 2009.

He says he is encouraged by the responses received by low midrange projects and has recently announced several projects of this type are plotted in the near future and that increasing the supply of new in this segment .



Fantastic expectations

The property sector has had a lot of expectations from the budget 2009 as an affordable housing tax benefits, reduced mortgage interest rates and support the extension of priority for housing loans up to Rs 30 lakh others, but none have been completed, which affect market sentiment in the small term.

The government focus on infrastructure development, but, should help the industry in the long term.

“There are certain operations on commodity markets, more market-oriented environment and affordable,” says Poonam Mahtani national director, residential services and knowledge systems, Colliers International. “The sentiments are generally positive, but, that this translates into a coherent realistic starting from 2010.

“The rental market remains under pressure with excess supply, while demand remains low. The upside is that the potential needs of the hiring is predicted by the multinationals are expected to materialize over the next six months, give something owners of residential properties to smile. ”

Premium Properties

The number of consultations for residential properties in domestic and NRI buyers increased during the second quarter of 2009. But the relationship of research to conversions remained low.

new property offers premium has remained limited in most major markets and no significant improvement is likely in the near future because of the growing attention of developers of housing projects segment average.

Migration of expatriate demand for premium markets in rental housing in the last quarter showed signs of improvement that expatriates moving to the country of his choice at a reasonable level in the second quarter of 2009.

In addition, as business in India is gaining ground in the recovery, demand for upscale housing in the country should be revived.

Courtesy: – HT State DT – 9/19/1909

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