Though traditionally quite conservative when compared to these cities, the Kolkata residential property market now has a rather heavy complement of investors driving it. The eastern micro-market – specifically Rajarhat – has seen the highest presence of investors, with investor sales outnumbering end-user sales in recent years. At the moment, it would be safe to say that around 60% of Kolkata’s residential real estate market is driven by investors.
During the global financial crisis, residential prices remained flat or took significant dips, depending on the city and location. Today, I note with considerable misgivings that we are looking at price levels in many micro-markets that exceed those reflected during the peak of the boom period in 2007. Matters are clearly leaving the realm of realism. While I expect selective price escalations to happen until the end of 2010, we are very likely to see corrections related to locations, projects and the degree of unrealistic pricing happen after that.
There is a rather touchy topic currently making its rounds in discussion circles on the Mumbai real estate market. I’m talking of the Centre’s proposed inviting of private participation to the extent of 49% in the redevelopment of more than 2000 over-the-hill buildings and 60 of Mumbai’s slums located in areas officially classified as CRZ, or Coastal Regulation Zones. The Government itself would invest the remaining 51%.
Far ahead of what market pundits have been predicting, the Pune commercial real estate market is already witnessing a great resurgence in demand.
Unlike more developed countries, India is a growing economy. Lifestyle aspirations are high, and earning capacities are increasingly matching these aspirations. Akin to other emerging markets, work and leisure are rarely divorced from each other in India. The fulfilment of lifestyle aspirations is not viewed as separate from the source of the revenue that enables it – be it driven by salaries or business turnover. This has led to a rather unique concept of luxury housing in India – homes with high lifestyle quotients as close as possible to the workplace.