India Real Estate: Updates from 8 Metropolitan Cities, Union Budget, and Economic Survey

USIBC recently featured experts from Knight Frank India over a conference call to share findings from their new report “India Real Estate: Residential and Office – July-December 2016.” This study was also used by the “Economic Survey 2016-17” (pp. 18, 67, 71) – a flagship annual document of the Ministry of Finance, Government of India, that summarizes the development of economic programs and policy initiatives. Dr. Samantak Das, Chief Economist & National Director – Research, also answered questions on the implications of the Union Budget 2017-18 on India's real estate sector.

The residential market of India's top 8 cities started off on a positive note in 2016. Despite this, demonetization pulled down the last quarter sales across all cities. The fall in Q4 was so intense, that the second half of 2016 ended below the same period in 2015. Uncertainty is likely to remain in the next quarter.

The office market on the other hand has grown from strength to strength with 2016 office demand holding steady and consistent with the 2015 level. In 2017, the industry could also look forward to the first REIT listing that will bring in depth in the funding of commercial real estate sector. However, it will be important to take note of new policies of the Trump Administration and outcomes of Brexit that are likely to decide the growth trajectory of the office market.

A summary of Knight Frank India’s study can be downloaded below. 

Knight Frank