Experts say Real Estate Sector would be Optimistic in 2014

In the CREDAI CONCLAVE meeting, which was organized in New Delhi with the theme “Housing, The Game Changer-Leading to Double-Digit GDP Growth” most of the industry veterans said that the real estate sector would be optimistic in 2014. With real estate approaching towards positive factor, they also added that government should assist the industry by making orders that would favour in the development of industry and country’s economy.

Addressing in the Conclave, Mr. Rohit Gera, MD of Gera Developments Pvt. Ltd said that the real estate sector will rise over the present situation of slowness that has beset the industry and this would be possible with the help of government which is not prioritizing the industry and has concentrated more on the slum rehabilitation.

Mr. Rohit Gera also added that the lack of appropriate implementation to get right solutions to the known problems is also one of the barriers in the industry. He also said that bringing few solutions in the industry like fast approvals and relaxation in Floor Space Index (FSI) and Foreign Direct Investment (FDI) would make way in the industry’s growth.

Other real estate experts who were present in the event were also likewise keen about the optimistic future of the real estate sector in the coming year. The industry is currently going through sluggishness in the market due to political volatility, which has led down the market sentiments. The same situation was observed in the year 2008, where India was one of the first countries that came back to a positive note within six months after market slow down.  Adding to this Mr. Vijay Mirchadani, Hon Secretary of CREDAI said that the industry also expects to see some positivity in the market within six to eight months and also added that for end-users it is the best time to take advantage of the present situation to invest before the prices shoot-up.

Speakers, who addressed in the CREDAI event, also stressed on the necessity of affordable housing in the country and said that irrespective of all the measures taken the industry was not able to meet the existing demand. Noida and Greater Noida regions were focused much to improve this situation and with regard this, Mr. R K Arora – MD of Supertech said that almost 90% of the demand is for affordable housing and only 5-10% are for the luxury segment.

On the other hand, many real estate experts said that demand for affordable housing can be met with the government’s support to the developers’ community and they also opined that other than regulatory measures, measures like additional FSI and fund for construction cost are also needed from the government’s end.