Fast Market Research recommends "India Real Estate Report Q1 2014" from Business Monitor International, now available
Boston, MA -- (SBWIRE) -- 12/25/2013 -- Rapid urbanisation, positive demographics and rising income levels means that the Indian commercial real estate sector has attracted significant investment over the past few years, however global economic slowdown and the potential easing of the US Federal Reserves' monthly bond purchase program has resulted in a temporary stalling of the real-estate market.
2013 saw GDP growth in India drop to the lowest level in over a decade, persistent structural issues ranging from the financial system to national infrastructure saw widespread capital flight in addition to record setting lows for the Indian Rupee against the dollar. Additionally, 2013 was an especially tense year for Indian-Pakistani relations, with cross-border skirmishes and reported cease-fire violations increasing in number from January-August. However, the leaders of India and Pakistan met for the first time in September a positive step towards a better relationship between the two nuclear powers.
View Full Report Details and Table of Contents
Despite these challenges, the commercial real estate market has thus far managed to avoid significant downturns, although demand, vacancy rates and rental stability in the short term remain a cause for concern. Nevertheless, BMI shares the consensus opinion that both economic performance and aggregate demand will improve post 2014, as investors begin to return to an Indian market which continues to display solid growth potential. Despite this we have downgraded our real growth projections for private domestic demand leading us to downgrade our headline real GDP growth forecast to 5.0% for 2013/14 from 5.5% previously.
The present Indian government has attempted to induce economic reforms in addition to a national infrastructure redevelopment in the months leading to the 2014 parliamentary election. Reductions on levels of foreign project financing, in addition to more restrictive controls on international investment by domestic firms, has helped foster the emergence of new capital in addition to relieving the pressure on a government already heavily reliant on borrowing. The lack of large-scale development in 2013, especially in the office sector, had a neutralizing effect on rents, which have marginally declined or seen no significant changes.
India's retail sector is following a similar trend being witnessed in China: a large movement of educated individuals into the middle class has increased disposable income, consumption levels, and fostered previously unseen demand for apparel, technology and grocery products, representing an upside potential for our retail real-estate forecasts. Though somewhat stagnant through 2013 due to lowered construction levels, scarce investment and consistent vacancy, India's retail sector shows enormous potential for growth in the medium-term, and could likely reach double-digit growth into 2014.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Business research reports at Fast Market Research
You may also be interested in these related reports:
- United States Real Estate Report Q1 2014
- Philippines Real Estate Report Q1 2014
- Mexico Real Estate Report Q1 2014
- Japan Real Estate Report Q1 2014
- Qatar Real Estate Report Q1 2014
- Kuwait Real Estate Report Q1 2014
- Pakistan Real Estate Report Q1 2014
- Bahrain Real Estate Report Q1 2014
- Egypt Real Estate Report Q1 2014
- Venezuela Real Estate Report Q1 2014