Just seconds ago, BOFA-Merrill Lynch Analysts Pushed the Go on the Indian Realty Sector Report which talks of a Bubble in NCR property Market and a Recovery in other parts. Excerpts from the report,
The National Capital Region (NCR) is the area around New Delhi, the capital of India. This area has traditionally been one of the three key real estate markets in India (along with Mumbai and Bangalore). Residential sales volumes in city center locations reached historical highs from March 2009 till date, driven by some speculation and genuine end-user demand. This surge has also spilled over to suburban and remote locations, where our channel checks suggest that speculation contributes to as much as 75% of demand.
Some of this euphoria has also have spilled over to far suburbs and remote locations (such as Dadri and Greater Noida). Merrill visited the NCR thrice in the last quarter. Channel checks suggest that the pick up was primarily speculative to the extent that speculation outweighs genuine demand by a factor of 3:1 in these remote locations. They forecast a decline of over 30% in the monthly run rate of primary sales on average in the NCR and north India. The largest impact is likely to be felt in the peripheral areas of Noida and Gurgaon and the remote suburbs (e.g. Dadri).
Signs of a revival in high-end residential and commercial markets - A revival in high-end residential and commercial property remains our core thesis for 2010. Sale of high-end residential units in Gurgaon and Delhi has picked up.
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