Market Overview

Research and Markets: India Property Industry 1H12: Experts predict price correction in the housing sector of the country

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DUBLIN--(BUSINESS WIRE)--

Research and Markets (http://www.researchandmarkets.com/research/mc6ggq/india_property) has announced the addition of the "India Property Industry 1H12" report to their offering.

India: Property covers the sector overview for India, sector size, competitive landscape, environmental scanning and recent industry developments. It also covers the key economic indicators for India, housing trends, commercial property trends, retail space, hospitality and special economic zones and industry forecast, plus the profile, comparative matrix and SWOT analysis of the industry leading players:

- DLF Limited

- Oberoi Realty Limited

- Sobha Developers Limited

Executive Summary

The Indian economy experienced an economic slowdown with high inflation in fiscal year 2012. India's property industry suffered a major slowdown with declining sales and rising inventory levels in the first half of 2012. In August 2012, Indian finance minister said in a meeting with the heads of public sector banks that around 500,000 flats were lying vacant in Mumbai despite a robust demand for housing. Affordability is a major concern for middle class Indians and a steady rise in housing prices together with high interest rates and inflation has neither helped their cause, nor has it benefited the real estate sector. As a result, experts are predicting a price correction in the housing sector of the country.

In the first half of 2012, a price correction took place in the commercial lease and rental segments of major cities. The slowdown in economic growth and vacant office spaces acted as catalysts in lowering rental prices of commercial properties. Residential prices, though, showed resilience and registered growth. The housing transaction volume index declined in the first three months, further indicating sluggish sales in the sector. An increase in residential property prices, despite decline in sales, highlights the presence of a bubble in the housing segment of the country, marked by an artificial demand creation.

The near term outlook for Indian property is negative because of declining sales, high interest rates and high inflation. Most of the leading real estate players are suffering from high inventory levels which may create working capital problems. However, looking at long term, the large supply/demand gap in the residential market and rising per capita income of Indians, along with increasing urbanization makes this sector stable.

For more information visit http://www.researchandmarkets.com/research/mc6ggq/india_property

Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Sector: Property

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