Market sentiment has clearly turned positive, reflected in the record levels that key stock indices reached this quarter.
Year 2014 has been a decisive year, as it has set the tone for positive changes in the country, after an incontrovertible election verdict that gave development a big thumbs up.
Year 2014 has been a decisive year, as it has set the tone for positive changes in the country, after an incontrovertible election verdict that gave development a big thumbs up.
Market sentiment has clearly turned positive, which is reflected in the record levels that key stock indices have reached over the last few months, lowering of inflation, and the turnaround of economy.
Politics and real estate are inextricably linked, with the push for reforms from the new government likely to have a cascading effect on the country's real estate markets.
Year 2014 was also a unique year of paradoxes. On the one hand, markets reported “not so encouraging“ sales and developers resisted the temptation to launch new projects, focusing instead on reducing the inventory that piled up over the past few quarters.
On the other hand, the sentiments which plummeted to rock bottom surged high, in large measure thanks to the confidence inspired by Prime Minister Narendra Modi.
The good news was easing of norms for FDI to attract more investors. Introduction of REITs in the Budget was the major news of the year, giving a big boost to the investment sentiment of commercial real estate.
But the regulation of the year, says Navin Raheja, president of Naredco, was amendments to the land acquisition act to make it more investor-friendly and create a favorable environment for developers, buyers, and investors.
The amendments are expected to tone down provisions like mandatory consent of at least 70% local inhabitants for acquiring land for PPP projects, and 80% for private projects.
Also the PM's announcement to build 100 smart cities will catalyze infrastructure development, urban boom and investment.
Ashish Jerath, VP (Sales) of Emaar MGF, says that the concept of smart cities will see the integration of technology into our urban infrastructure, which is bound to make our lives easy. With the government's program of “Housing for all“, affordable housing has suddenly become the most fashion able catch phrase in the sector. As developers like Raheja and Supertech launch new projects in this segment, it is evident that the supply of affordable housing will increase many fold, much to the common man's relief, and bridge the demand-supply gap.
Year 2014 kick-started the on line story for Indian real estate industry. Online became hot as real estate went digital.
Now, real estate has gone to the virtual space, especially with the recent Google Online Shopping Festival (GOSF) where the country's premium developers like Tata Housing, Puravankara Projects, Bangalore-based Brigade Group, Mahindra Lifespaces, amongst others, participated.
Today, e-commerce has become an important sales channel for Tata Value Homes and Godrej Properties, with online transactions accounting for 45% and 18% of their sales, respectively.
Gurgaon, the favorite of both developers and end users, was Year 2014's real estate market of the year. The city offered a variety of projects from budget to top end, luxury projects. Buyers' interest is indefatigable thanks to the active corporate sectors here, which create employment as well as huge HNI-NRI interest.
The Millennium City encouraged developers to launch innovative projects in several categories with the result that “a buyer in Gurgaon doesn't really buy a home, he buys a lifestyle“, industry stakeholders claim.
The city saw innovation in product design, payment plans and marketing approach, which is being adopted by developers to stand out in the market. Year 2015 will definitely be a good for the real estate sector, as the threat of inflation has completely abated, and borrowing rates are sure to go down from the current levels.
Source: PropertyatNeoDevelopers.Wordpress.Com
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