It is believed that there might be a reversal of the slowdown in 2014, as the real estate sector is facing costlier borrowing and increasing property prices. They expect sales to pick up post the general elections.
It was seen that the year 2013 saw muted commercial leasing, low demand for housing units, buyers’ discomfort due to delays, a number of unsold housing inventory, limited projects’ launch and debt-ridden developers scoring lower revenue-net profit numbers in real estate.
It was seen that the year 2013 saw muted commercial leasing, low demand for housing units, buyers’ discomfort due to delays, a number of unsold housing inventory, limited projects’ launch and debt-ridden developers scoring lower revenue-net profit numbers in real estate.
Even in the midst of all this, there was a ray of hope in the form of two major government initiatives for the real estate sector. The two major government initiatives were the proposed Real Estate Regulatory Bill and the new Land Acquisition Act which will go a long way in making the real estate sector more accountable and transparent.
However, these moves by the government didn’t go down that well with the developers as they felt that the provisions were more farmer-oriented and consumer-friendly and might lead to delays in the development of projects and enforce price escalation. According to the chairman and managing director of a renowned company, he stated that the provisions of the Bill would result in escalated land and project costs and thereby affect affordability of real estate across India.
According to President, CREDAI-NCR, as has been observed in the past few years the controversies with respect to forcible land acquisition, the Bill is surely the requirement at the given moment. But, given the present situation, the Bill makes the process of land acquisition time consuming, he said.
The present condition of the real estate industry is cash-strapped. Hence, the realty industry welcomed market regulator SEBI’s draft guidelines to allow Real Estate Investment Trusts (REITs) and Commerce Ministry’s proposal to relax FDI norms. It is believed that no sooner these steps are implemented, they will surely help in reviving the global investors’ interest in a sluggish property market.
According to Chairman of CREDAI, he stated that they were hopeful about the year 2014 and hope to see a positive shift from the earlier years. Thus, it would bring in the much needed constancy and clearness in the property market. It is also believed that all areas, which seem to have good social infrastructure and connectivity, will witness maximum real estate development in the coming year. He also stated that they were looking forward to 2014 as a much better year for the real estate sector as compared to 2013.
However, these moves by the government didn’t go down that well with the developers as they felt that the provisions were more farmer-oriented and consumer-friendly and might lead to delays in the development of projects and enforce price escalation. According to the chairman and managing director of a renowned company, he stated that the provisions of the Bill would result in escalated land and project costs and thereby affect affordability of real estate across India.
According to President, CREDAI-NCR, as has been observed in the past few years the controversies with respect to forcible land acquisition, the Bill is surely the requirement at the given moment. But, given the present situation, the Bill makes the process of land acquisition time consuming, he said.
The present condition of the real estate industry is cash-strapped. Hence, the realty industry welcomed market regulator SEBI’s draft guidelines to allow Real Estate Investment Trusts (REITs) and Commerce Ministry’s proposal to relax FDI norms. It is believed that no sooner these steps are implemented, they will surely help in reviving the global investors’ interest in a sluggish property market.
According to Chairman of CREDAI, he stated that they were hopeful about the year 2014 and hope to see a positive shift from the earlier years. Thus, it would bring in the much needed constancy and clearness in the property market. It is also believed that all areas, which seem to have good social infrastructure and connectivity, will witness maximum real estate development in the coming year. He also stated that they were looking forward to 2014 as a much better year for the real estate sector as compared to 2013.
May be during the election season, Real estate prices may come down to normal level. In the year 2014 may be helpful for the builders also.
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