On November 8, 2016, the Government of India de-notified currency notes of Rs 500 and Rs 1,000 as legal tender. The temporary shortage of cash adversely impacted several sectors that depended on cash, notably wholesale markets, the informal sector and even parts of the real estate industry. The real estate industry involves both, formal as… Read More »
A major part of 2016 passed with an anticipation of an impending upswing in Indian real estate. In the first half, legislative processes in the parliament kept the movement limited, and then, a near grinding halt was witnessed in the last quarter, with the ‘demonetisation’ event. Only for a few weeks, during the festive season,… Read More »
2016 was year of many big announcements. From the Smart Cities mission to demonetization, there were several headline-making events that would change the face of Indian real estate in the times to come. Chennai embraced these changes and lived up to its reputation of being a city that bounces back, regardless of the odds. Chennai… Read More »
Of the total uptake of office space in 2016, nearly 40% of the total net absorption took place in the last quarter of 2016, according to a international property consultant. Bengaluru recorded the highest net absorption during the year. The city’s net absorption rose 28% to 12.7 msf during 2016. The new high in 2016… Read More »
The November 8 announcement of the government to demonetise high value currency notes of Rs 500 and Rs 1000 has dampened sentiments of the real estate sector across India, which until now had been comparably more upbeat than most markets in Asia. Both the Occupier Sentiment Index (OSI – an index that shows supply, demand… Read More »
Steady rentals, high absorption levels and limited supply, have contributed to the commercial real estate market in India witnessing an improved sentiment. This segment has witnessed a surge, relative to other real estate asset classes, on account of the growth in the IT/ITeS, BFSI and consulting sectors and the growth of high-potential start-ups. There has… Read More »
If demonetisation severely impacted the residential real estate segment in 2016 with sales dropping by 9% from 2015, the commercial real estate segment, backed by demand for office space, saw sales climbing 9% in 2016 over the previous year, according to real estate consulting firm. In a report, the property consultant said the year witnessed… Read More »
Property market, long considered a black money safe haven, seems to have taken a big hit from demonetisation, with developers seeing their sales drop by about 50 per cent in the last three months and now pinning their hopes on buyers coming to market with ‘white money’. The genuine buyers in the residential market, on… Read More »
Demonetisation has not slowed down the commercial property market, at least in Bandra-Kurla Complex (BKC). Consider this fact: In the past one month, several office lease transactions have been concluded in the business district. Most of these deals have taken place in Maker Maxity, the 18-acre office complex which is a joint venture between Mukesh… Read More »
Amidst demonetisation driving significant demand contraction in consumer discretionary sectors, public sector contracting can be a ‘safe haven’. Subsequent push on infra spending, subject to ability to spend, can be a positive as well. For Larsen & Toubro, the impact is limited to temporary disruption in near term and slower execution of real estate contracts. We… Read More »