Despite inhibitors such as euro zone crisis, policy paralysis and dampening investor sentiments, the Indian economy has showed resilience given strong fundamentals like urbanization, a rich demographic dividend, rising disposable incomes, propensity to consume and propensity to save.
Our recent research paper Indian Realty Through the Looking Glass discusses the real estate industry's placement in the current scenario. The report throws light on what can unlock the logjams to fast track real estate development in India, alongside a detailed analysis of the performance of office, retail and residential asset types.
Commercial: The period from 2Q12-4Q12 could provide a fast closing window of opportunity for both buyers and tenants of office space, when rental and capital values are moderately above their cyclical low.
Retail: Quality of retail space should be elevated to meet the standards demanded by international brands.
Residential: The residential market is full of demand, provided price is aligned to move towards affordability. Timely execution is a must to maintain healthy sales volumes as buyers' preference to buy is closely linked to the certainty of possession by the promised date.