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Nirmal Bang: Realty Sector - Weakness In Residential Market To Persist; Prices To Remain Weak 

Nirmal Bang: Realty Sector - Weakness In Residential Market To Persist; Prices To Remain Weak

Workers labor in a construction site at  residential project. (Photographer Ruhani Kaur/Bloomberg)
Workers labor in a construction site at residential project. (Photographer Ruhani Kaur/Bloomberg)

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Nirmal Bang Report

We interacted with Mr. Abhishek Kiran Gupta, the Managing Director and owner of CRE Matrix.

Given below are the insights given by him for residential, commercial and retail segments of the real estate industry.

Residential segment – strong pick-up in demand as per registration data, with September 2020 registrations at 85% of pre-Covid-19 registration run-rate.

He expects sales during the upcoming Diwali festival season continuing until Q1 CY21 to be higher than the pre-Covid-19 sales due to lowered duties and discounts given by the developers.

Commercial segment (office) – Mr Gupta sees visible impact of the Covid-19 outbreak on the commercial segment, with absorption averaging approximately 25-26 million square feet in CY20 as against 45 million square feet in CY19.

Retail segment – Massive renegotiations have taken place between the retailers and mall owners post June 2020. This segment will be the last to recover in the real estate space.

Click on the attachment to read the full report:

Nirmal Bang Real Estate-Sector Update-15 October 2020.pdf

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