Monday, 30 May 2016

SPRING IN SECTOR - Residential sector set for rebooted growth

A majority of industry experts and developers say that better days seem to be ahead for the residential sector now.

Having faced turbulent times for the past few years, the nation's housing market is now showing signs of revival, spurred by changes in the economy as well as various initiatives taken by the Union government.

Trends are beginning to change basis expectations of a good monsoon, revival in the economy, reducing inflation and the fact that residential prices have bottomed out.

Also, improving regulatory environment in the real estate sector, coupled with progressive government schemes like Smart Cities, AMRUT, and Housing for all by 2022 are beginning to have a positive influence. On top of this, with banks passing on interest rate cut benefits to consumers, the residential sector is all set for rebooted growth, a report by JLL India said.

A majority of industry experts and developers also believe that better days seem to be ahead for the residential sector now. The biggest influencer being the signs of economic revival and improving regulatory environment.

“India's residential sector has been going through tough times for quite some time. However, the scenario is going to be better now with government initiatives. The sector is going to see faster growth, influenced by various positive factors. The signs of economic revival, along with foreign investment coming into the country, are one such factor. The improving regulatory environment is also likely to impact the sector in a positive way,“ a senior executive of a real estate firm said.

Liberalization of FDI norms, focus on affordable housing, etc, have started giving a helping hand to the ailing sector.

“India's realty sector has started to show some encouraging signs and we are expecting a strong growth in the second half of the year. It can very well be credited to the government's initiatives like step-by-step liberalization of FDI norms in construction and development over the past two years, focus on affordable housing and a strong regulatory act. With the government's determination to streamline India's overall economy and bring transparency in the real estate sector, a robust growth of the sector seems very likely,“ Vivek Singhal, president (corporate strategy) of M3M Group, said.

Singhal says that the Real Estate (Regulation and Development) Act has helped foster people's faith in the sector. This coupled with the availability of affordable housing and falling interest rates has triggered demand in the residential segment.

Aman Nagar, director, Paras Buildtech, says, "The realty sector is heading for a growth in sales helped by a likely good monsoon, which will put new life into the economy and also reduce inflation".

Source: PropertyatNeoDevelopers.Wordpress.Com

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