Investment into residential projects is currently the preferred route for investors, since the demand for homes in the metros and Tier II cities is virtually limitless. Commercial and retail spaces also present potentially lucrative investment propositions, especially in the larger cities.
Indians who buy holiday homes tend to have higher disposable incomes and hail from the middle and top management segments. This buyer segment is usually in the age bracket of 35-45.
Most retailers perceived 2011 to be a flat year. Economic growth for 2012 is pegged by most retailers at 6.8–7.2%, and inflation is likely to level off at 6-7%. Most retailers expect 2012 to be a flat year in terms of profit margins, growth and expansion.
With the market set to bottom by out by the second quarter of 2012, we will see the beginning of a recovery in the city’s residential real estate fortunes by the second half of the year. Meanwhile, there is very little scope for appreciation in under-construction projects.
Real estate developmental density in Mumbai has not kept pace with the growth in population density. Due to the huge pressure on the city’s already scarce land resources, market forces have tended to circumvent the base FSI regulations and build more through ‘discretionary approvals’ in lieu of construction of civic amenities such as parking structures.