Knight Frank reports 2015 to be a year of stabilisation

 Knight Frank India has launched the second edition of its flagship half-yearly report, India Real Estate Outlook. It presents a comprehensive analysis of the residential and office market performance across six cities for the period between July–December 2014.
Speaking about the findings, Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “Year 2014 has not been a great year for Indian real estate as stated in our latest findings of the Knight Frank Real Estate Sentiment index report, jointly developed by FICCI that reflected a correction in stakeholder sentiments on the back of a slowing demand environment. Residential sales across top cities have dropped in 2014. While sales volume fell by 17 per cent, launches dropped by 28 per cent.
“However, we expect 2015 to be the year of recovery and stabilisation. The current economic indicators look positive, though the real impact will only be felt by the second half of this year. A surprise rate cut from RBI has marked the beginning of a new year and going forward, the ‘Make in India’ campaign, REITs, FDI relaxation and smart cities among others, augur well for giving the much needed boost to stakeholder sentiments,” he added.
Mr Baijal further added, “However, office markets across the top six cities have already shown a turnaround in 2014. In fact, vacancy levels have been on a downward spiral since 2013. While absorption rose by 14 per cent, new completions contracted by 6 per cent during 2014. Vacancy levels in Bengaluru have already touched 10 per cent as of December 2014, and we expect the city to clock single digit vacancy levels in the next six months. Growth in the office market is going to sustain owing to a strong revival in driver industries and recovery in the global economy.”

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