Tag Archives: Residential Space

Realty Getting Costlier

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My House drawing, back side
April 23, 2010

The real estate buyers are in big trouble in how to buy a dream home with these increasing costs of realty day by day. Since more than eight months, a 30-year-old professional, Nisha Parekh, has been searching for a proper and affordable residential space in Ahmadabad for her family but has not yet succeeded despite of aggrandizing her budget by Rs. 10 lakh, i.e, from Rs 25 lakh to Rs 35 lakh.

This is not the story of just one Nisha. It is about all the young buyers who failed to buy their dream home since the prices of realty shoot up by 30 percent in August 2009. Ms Pakekh, who till recently was working as a researcher with ISRO also added that due to these price hikes, she failed to buy her a dream home aven after increasing the budget with a decent amount.

One more witness of this price hike is Mr. Dutta, who noticed that in 2008 prices in Mumbai touched the sky. He added that after this hike, on recognizing lower volumes of transactions, the developers use inducements as goodies to attract home buyers. A price correction of around 15% could bring back buoyancy into the market, based on various indications. According to him, if this price rise continues, it will force the developers to finally come up with certain schemes and discounts that were done away with.

Also according to him, the realtors are majorly focusing on high profile projects which fall in the category of above Rs. 40 lakh costing but if seen from buyer point of you, they are totally unaffordable,
even with the economy stabilising and improved job security.

Mumbai expects highest residential space demand

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Mumbai is expected to see the highest demand for residential space of approximately 16.40 lakh units due to the large scale urbanization. The mid-scale and affordable housing in suburban and peripheral areas will be the focus of this demand. However, the demand for office space would be approximately 23.7 million square feet, which is lower than that in Bangalore, Chennai and NCR.

The demand for hospitality in Mumbai is expected to be strong at over 98,500 room-nights, by virtue of the fact that the city is regarded as the financial capital of India and therefore the volume of both domestic and foreign business travelers is expected to grow steadily. Demand for retail is expected to be 6.19 million square feet.
On the other hand, Pune is expected to see the highest compounded annual growth in retail demand at 51% due to the current favorable demographics. The total expected demand for retail in Pune is approximately 1.76 million square feet. Office demand in Pune is expected to be 21.7 million square feet.

Bangalore emerges as a clear preference for sectors like office and retail, while it comes a close third in the residential and hospitality segments . Bangalore is expected to see the highest demand for office space in 2009-2013 of approximately 34 million square feet.