Indian Economic Overview

India is set to be Asia's biggest turnaround story and the country's GDP (Gross Domestic Product) Growth is expected to rise to 6.5% in Financial Year 2017-2018, 7.0% in Financial Year 2018-2019 and 7.6% in Financial Year 2019-2020.

According to Research Reports, India’s growth story has a two-part narrative. The first is a slowdown and gradual recovery in the short run, likely over Financial Year 2018 and 2019, as key sectors revive from disruptions related to the implementation of GST. The subsequent narrative is of brighter growth prospects in the medium term Financial Year 2020 and beyond, when growth is expected to reap the benefits of recently undertaken structural reforms. The recovery in India’s GDP growth will likely be relatively gradual, preventing price pressures from rebounding.

The last few years have been challenging for the Indian Economy, with Real GDP Growth rising from 5.5% in 2012 to 6.5% in 2013 and then to 7.5% in 2014 and 8% in 2015 but then reducing to 7.1% in 2016 and 7% in 2017.

It is not an exaggeration to expect India to stand out as the biggest emerging market turnaround story in the next five years. Reforms are expected to revitalize Real Investment Growth to 10% per annum, lifting potential Output Growth to around 7% in the next five years and if reforms are fast tracked, Real Investment could hit 15% per annum, raising potential growth to above 8%. Moreover, the Indian Economy is starting to turn around as inflation is abating, the Current Account Deficit is narrowing, Forex Reserves are accumulating and Growth is just starting to rise.

Indian Property Market Overview

Although the property market has returned to normal after the demonetisation drive in November 2016, it was further impacted by Real Estate (Regulation and Development) Act in several states and the nationwide execution of the Goods and Services Tax (GST). There was a decline in the number of new launches of residential and commercial projects over the year. The luxury market has been affected the most, and the number of launches reduced considerably in this segment. At the same time, affordable housing segment have more than made up the loss of the luxury segment and posed to be the next big thing in the Indian property market.

Property Price Trends

The property price in Kerala is in general has appreciated at an average rate of around 12% per annum over the last 25 years.

The property price of Kochi has appreciated at an average rate of around 15% per annum over the last 25 years.

The rental return of Kochi for residential properties ranges between 2% to 3%.

The average residential rent of Kochi is around Rs.10/-per Sq. Ft. per month.

The average commercial rent of Kochi is around Rs.50/- per Sq. Ft. per month.

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