“It is a bold move. While it may cause some pain in the short-term, the long-term outlook for the industry looks positive. It certainly helps that the real estate industry has already moved towards transparency in its operations. Several steps taken by the Government in recent times—from the RERA Act and GST, to REIT—combined with this announcement, will further improve transparency and increase investor confidence in the real estate market in the long run.”

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First 9 months of 2016 witnessed office absorption of about 28 million sq. ft.: CBRE Report

As per findings of CBRE’s latest India Office MarketView Report – Q3 2016, demand for prime office space reached a 10-quarter high of approximately 11 million sq. ft. for the July – September period. The quarter recorded a growth of 9% on a q-o-q basis and 14% on a y-o-y basis. As on September 30, 2016, overall prime office space absorption across the seven leading cities was about 28 million sq. ft. for the year. Continue reading

Real estate needs balanced regulatory framework and healthy financing

India is without a doubt one of the fastest growing large economies of the globe and one of the main sectors to benefit from this development has been real estate, which is not only developing at a rapid pace but also witnessing a structural shift. The last quarter of financial year 2015-16 registered the fastest gross domestic product growth in the past five years at 7.9%, while the real estate services (categorised alongside financial, insurance and professional services) has registered the highest growth of 10.3%.  Continue reading

Another Rate-Cut by the RBI, Repo Rate at a 6-Year Low

The Reserve Bank of India (RBI) yesterday reduced the repo rate by 25 basis points – the sixth rate cut implemented since January 2015, bringing the repo rate to a six year low of 6.25%. This monetary easing was largely done on the back of a softening inflation target amidst slightly slower, but steady economic growth. The current rate cut is expected to create a better lending environment, especially as it precedes the festive season in India. Additionally, the Central Bank has indicated towards a continued accommodative stance, thereby indicating towards room for further monetary easing in the coming months.  Continue reading

“The RBI’s latest bi-monthly monetary policy review is a welcome one. The announcement will not only help the real estate industry to rejuvenate housing sales but will also infuse consumer confidence in the festival season. The amalgamation of lower interest rates along with the measures taken by the government towards reforms will help provide the necessary impetus to the sector”.

CBRE on RBI Credit Policy