New Delhi: Residential market in the country is still subdued despite an increase in the number of enquires, according to real estate consulting firm Colliers International. There were restricted sales transactions observed in major cities including Mumbai, Delhi, Gurgaon and Noida during first quarter of 2014, said Colliers International.
However, it said that Chennai, Bengaluru and Pune markets remained active and witnessed new project launches. Developers have continued offering buyback schemes and possession-linked payment plans to provide much needed comfort to buyers. “With the new government in place and business confidence is gaining momentum, we anticipate an increase in residential sales in the coming quarter,” said the firm in a report.
The report said that the leasing market slowed in both Mumbai and Delhi considerably due to limited hiring by multinational companies and embassies. “With tenants getting more cost conscious, landlords were more open to rent negotiations. The decreasing demand and cost optimisation from corporations have prompted landlords to lower their rent expectations in order to secure tenants,” said Colliers. This quarter, rents for prime residential properties witnessed a decline in the range of 6 per cent to 10 per cent in Delhi and 1 to 7 percent in Mumbai respectively, it added.
