With many amendments in policies and announcements such as ‘Housing for All by 2022’, the provision of Rs 7,060 crore for establishing 100 Smart Cities, the notification of norms for launching REIT funding by SEBI and efforts to bring in more flexible modifications, the new government brings hope for the New Year 2015 for the real estate. The seven important points that the real estate industry looks at that can help the sector to grow are:
Drop in interest rates: The high interest rates are keeping buyers and investors away from the market. “From an home buyers point of view the sector has not been able to provide fruitful proposition due to high home loan interest and escalating property prices. This has breached the limitation for the affordable housing segment, thereby keeping them at bay as fence sitters waiting for correction to happen,” says Neeraj Gulati, MD – Assotech Realty Pvt Ltd.
Single window clearance and funds for developers: Delay in approvals from the concerned authorities is one of the major reasons behind many project delays. “The sector seeks more reforms in the form of single window clearance, widening of ECB and granting infrastructure status to further boost the real estate,” says P Sahel, vice chairman, Lotus Greens Developers Pvt Ltd.
Infra status: Infra status for housing would help make projects more price-competitive for end users and give developers the incentive to push for more sustainable construction and take up affordable housing in a big way.
Affordable Projects: Since there was some incentive for affordable housing in the ‘Budget’, in 2015 we would see more such projects being launched. “There is an inherent need for homes across the country and while this need has translated to marginally lower demand during 2014, which is expected to follow up in the coming year, it is a matter of time before the need converts to demand,” says Gaurav Mittal, MD–CHD Developers Ltd.
Infrastructure development: Real estate would also look for some infrastructure development as the real estate is linked with infrastructure development such as Metro expansion. “New and emerging real estate corridors – such as Sohna, Yamuna Expressway and Dwarka-Gurgaon Expressway in NCR, Ulwe and Karanjade in Mumbai and Hennar Road in Bengaluru are already attracting projects, buyers and investors due to the planned infrastructure and speedy connectivity in these locations,” says Amit Gupta, MD Orris Infrastructure Pvt Ltd.
“The Delhi-Mumbai Industrial Corridor is one of the perfect examples of rise in the infrastructure which will cover most of the industrial zones with parallel development of Smart Cities as well as efficient creation of a complete logistics network,” adds Gulati.
FDI: The relaxation in Foreign Direct Investment (FDI) policy was the biggest relief. The real estate sector would welcome some more foreign investors coming to the Indian market. “NRIs and HNIs have shown interest in the Indian real estate in the recent past. We would expect some more increase in NRI and HNI investments which would be very important form the real estate industry,” says Gupta.
Regulatory Bill: The implementation of the real estate regulatory bill with minor modifications will pave the way for a more attractive and transparent real estate market. “Additionally, with developers having to register all projects with the regulatory authority before commencing construction, customers would be able to track the status of every project,” says Sahel.