Despite tortoise like pace, the fearless attitude of the real estate sector is commendable. But the catalysts of this positive market are however the people. All credit goes to the increased urbanization and heavy consumption of houses, the property rates in India is at all time high. Last year (2012) was slow compared to last to last year. Both residential and commercial sector faced a drop and struggled with unsold inventories. On the other hand there is a huge shortage of homes that would fit for middle/low income group. This imbalance kept the sector in shambles. But the ray of hope is never lost in business. The recent cut down of repo rates has culminated an expectation of lessening of home loan interest rates. The recent budget proposed multimillion investments in the infrastructure industry which will fuel every realty section. There are bad times and there are good times, and here the picture is turning itself from hazy to clear, might be to make us look at the good and gleaming real estate (predicted) in the year 2013. Below are 13 quick points that features strong facts that really matters to real estate of the country.
- The primary factor that affects everything is the economy. Any minor rise or drop in market scale can alter the whole situation of country. The realty sector too is dependent on it. The country is struggling with economic crisis however the heavy consumption and urban agglomeration will not let the realty industry fall. With prices undergoing correction, stability is expected rather than slump.
- Policies that will matter this year are many. The Real Estate Regulation Bill (to regulate urban settlements and ensure transparent transaction of immovable properties), Real Estate Investment Trust (REIT is a trust to accumulate funds for the infrastructure development) and the Land Acquisition and Rehabilitation and Resettlement Bill (backing landowners right for the land and monitors fair compensation and resettlement). The nod for any of these will have a powerful impact on the picture of real estate.
- In 2012, an inflow of USD 2.8 billion in the infrastructure sector through FDI is accounted. Now as the government has eased out few regulations in multi-brand retail investment, more FDI is expected to come which will give a thrust to the sector. Numerous foreign brands are establishing their stores out here in India and that needs mammoth space. Hence a need of construction of commercial space to cater these brands is created, fueling real estate scene of the country.
- The office space absorption will stay same as last year as the companies are walking on a steady state. Since the space in prime locations is limited and competition is high, the rent is expected to rise. However the SEZ spaces are on multiplication and giving a new look to the infrastructure of the country.
- Relaxation in FDI policies will boost the retail sector however the mall supply will be steady as developers are focusing more on the residential projects. But this year will be good for retail as many new businesses from foreign countries are knocking Indian doors.
- The new trend to lay eyes upon in residential sector will be the REIT’s new policy of investment in rental housing. Developers are already eying for it and a shift in the regular scenery is anticipated. A common trend few years back was instant selling of buildings under Rs 2000-3000 per sq ft but as inflation hasn’t left any sector, the price range will shift to Rs 3000-5000 per sq ft.
- The industrial sector is one of the major economy boosters and as India walks on the path on heavy industrialization, several factories are yet to be set up. With high scale manufacturing units and production plants are setting up, the industrial real estate will have a good time this year.
- Education and health care facilities will be on focus mainly in non-metro cities that lacks these basic necessities. Hospital chains, health care centres day care centres, skill development institutions will expand explosively in the current year. These segments will be receiving private equity investments also.
- Banks are expected to be more flexible in lending. Debt capital is likely to increase. The investment sentiment for the real estate sector would remain positive as current budget showered heavy investment in the infrastructure and rural and urban housing.
- Coming to cities that witness the most, Mumbai is going to have more residential launches, mostly in luxurious class. However price drop is unlikely. The commercial realty will not be much in action this year because of bank’s tough regulations for commercial buildings than residential.
- The region around Delhi i.e. Gurgaon and NCR will continue to commercialize adding more office units. If there is mismatch in supply and demand the rental value is going to be affected.
- Bangalore will continue to remain hotspot of real estate. Outer ring road will stay most sought after location and whitefield will be retaining its glory due to affordability and proximity to work. The city will remain the best performing and many new residential launches are scheduled.
- Cities like Chennai, Pune, Kolkata, and Ahmedabad are no less behind from the big-three (Delhi, Mumbai and Bangalore), however compared to 2012, fewer launches are expected. India Property Prices will be hiked as it used to always due to increase in construction cost.
These 13 points depict the cover story of the real estate in India however what lies in deep, only time will tell. займ на карту без отказов круглосуточновзять кредит онлайн