Wednesday, 6 January 2016

2016: The year of promise

A number of measures taken by the Narendra Modi government appear to be yielding results with experts and stakeholders showing a heightened optimism about the revival of the real estate in 2016.

The NDA government has put focus on infrastructure and has relaxed norms in foreign direct investment (FDI), which will be the major driving factors for the real estate in 2016.

This, coupled with an uptick in demand from end users, is a strong indicator that real estate will revive in the New Year.

Owing to a slowdown in the market, very few projects were launched in the last two years. Thus, once the present unsold inventory is sold out, there will be an acute shortage of fresh projects in all the metro cities, particularly in the Delhi NCR, consultants said. The general perception is that prices will rise after this.

However, the key question is by when would the inventory of the unsold stock be sold out? It is but obvious that apart from the existing pent up demand, fresh demand, too, is likely to come up.

The absorption of commercial real estate picked up in the last six quarters, a report said. That means new jobs are being created and this will certainly create new demand for residential units. Thus, consultants say that by the second third quarter of 2016, the unsold stocks are likely to be sold out.

A JLL India report says that sales have already picked up in a few cities like Mumbai, Hyderabad, Bangalore and Gurgaon and that the recent attractive schemes from developers, coupled with lowering of interest rates by the RBI, have activated the fence-sitters.

Source: PropertyatNeoDevelopers.Wordpress.Com

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