//Realty developers struggle to sell homes, but boom in office space segment

Realty developers struggle to sell homes, but boom in office space segment

The two main segments of Indian have shown mixed trends in the past five years. While have struggled to sell residential properties, those dealing with office spaces have relatively done well because of good absorption. Embassy and Blackstone are planning to come up with the listing of the country’s first investment trust (Reit).

A slew of measures such as demonetisation, goods and services tax, (regulation and development Act) have hit the residential sales badly. National Capital Region has been hit the hardest as it was mostly investors’ market. Sales have halved in and Prices have also remained stagnant, leading to “time correction”. While affordable segment is still selling, it is the premium segment that is facing lower sales.

chart



chart

Note:

•Data points are updated till Oct-2018

•Apartment, vilas and independent floors have been considered.

•Lottery supply has not been included

•Average wieghtrd price of absorbed units being considered

•Rent is per sq ft per month; 2018 figures are estimates; Source: JLL