Realty rebound on cards with over 3 lakh houses to come up by 2011

Realty rebound on cards with over 3 lakh houses to come up by 2011
The Financial Express, November 27, 2009, Page 12

fe Bureaus, Chennai

Leading independent global property consultancy, Knight Frank India, said its latest research on the country’s residential market found that 3,67,000 housing units will be available by 2011, across seven Indian cities of which 25% will come up in the National Capital Region (NCR) alone. The NCR will be the largest contributor with 92,202 housing units equating to 160.16 million sq ft of fresh supply of residential space followed by Mumbai with 72,906 units equating to approximately 80.61 million sq.ft by the end of 2011.

With the resurgence witnessed in the global economy, particularly the real estate sector, Knight Frank’s report further said 75% of the present and future residential supply will focus on the 2 and 3-BHK housing units being built. The report closely examines potential residential supply across several key cities by the end of 2011.

“Our research has shown that during the slump there has been a price correction across several cities from 10% to as much as 40%. Since March 2009, residential property prices have again increased by 10% to 30%, but this phenomenon is limited to cities like Mumbai and Bengaluru. It is not a countrywide phenomenon. Many developers are targeting the mid-income group in key metros with housing units that are priced to suit their needs,” said Gulam Zia, national director, research and advisory services, Knight Frank India.

Commenting on the residential research report, Anand Narayanan, national director, residential agency, Knight Frank India said, “Our research has revealed several interesting trends with regard to the residential sector. One of the most important trends emerging is the increased focus of developers on 2 and 3-BHK housing units from the 4 and 5-BHK and penthouses witnessed few years back.”