SG India real estate outlook stable: expert
Property Here - Monday, April 15, 2013
With India’s economy in the process of getting back on track, its property market will also stabilise in the next two to three quarters, noted Sanjay Verma, CEO (APAC) at Cushman & Wakefield.
In a recent interview with the Business Standard, he played down concerns of another meltdown in the global property market.
“While there may be some concerns about overbuilding in certain sectors in certain markets, the likelihood of a global meltdown is extremely low. Such an event would require a major global recession, led by steep declines in the US and a hard landing in China.”
But several markets around the world are slowing down – a scenario which has mixed effects on Indian property.
“The ongoing slowdown has had a mixed impact on the property markets in India. In the commercial office sector, we have seen that though companies are still committed to their expansion plans, they are in a wait and see mode and are progressing very slowly on executing them,” Verma said.
Despite this, companies are leveraging on huge supply to consolidate and relocate to better quality spaces for cost savings and efficiency.
“In the retail sector, national and international retailers are still keen on expanding their presence and have been taking up spaces in both high streets as well as malls.”
Moving forward, Verma is optimistic that Indian real estate will continue to be stable in the next two to three quarters.
“Indian real estate is still quite stable and offers some of the best investment options even on a global level.”
“Overall the year will show stability, though we do expect the first half to be somewhat subdued and the momentum could build up from towards the end of the second half of the year. This is of course subject to the political conditions remaining stable and an anticipated economic recovery to take place as the year progresses.”
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email firstname.lastname@example.org