Lands deals in India, Drop by 20% to Rs 15,000 crore: Cushman & Wakefield Report

Hit by a demand slump in the residential sector, India is likely to witness about 25% decline in land deals to about Rs. 15,000 crore, real estate consultant firm Cushman & Wakefield (C&W) said.

The company also said most of the land purchases would be done by regional smaller players instead of major developers.

Mr. Sanjay Dutt, Executive Managing Director (South Asia), C&W said,  "The market sentiment is very negative. This year we may see land deals worth Rs. 15,000 crore happening across various locations in India"

Our country had seen land deals worth Rs 20,000 crore in 2011.

Mr. Dutt also said, ''Out of the expected transactions, Rs. 7,000 crore to Rs. 8,000 crore have already taken place. NCR and Mumbai will alone account for 60 to 70% of the total deals, along with some top tier I cities. Some tier II cities will also witness some deals.Most of the land purchases will be done by regional smaller players instead of major developers and promoters."

Organised players such as Godrej, Mahindras and L&T will continue to purchase plot of land as and when required.

Sales of houses have fallen by nearly 30% pan India in the past one year.

Some places in Mumbai &  NCR prices have gone up tremendously in the past 2 years. This has led to slowdown in demand.

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