Thursday, 10 April 2014

Indian Real Estate Past - 2013 and Future - 2014: ADreamz Infra News

The year 2013 saw a sluggish growth and the continual of high inflation from the past few years. The real estate sector also witnessed slow growth due to depreciating value of rupee, stern monetary policies, reviewed norms in lending to the real estate sector by RBI, restriction on subsidy schemes and unstable political condition in the country.


The Nielsen's Consumer Confidence Index showed a severe waning of consumer sentiment and real sector was also affected by the increase of gloom.

In comparison to earlier years, the real estate sector in the festive season didn’t bloom as expected and it was observed that the asset classes remained calm. The residential property prices increased in spite of decline in the market sentiments and because of which the absorption rate declined when compared to the previous year.

IT was also observed that cities with increase in supply saw a huge decrease in absorption. On the other hand, demand in suburb areas raised due to its affordability, strategic locations, and infrastructure development.

Though, the year 2013 didn’t go well for the real estate sector, some measures taken by the government like the introduction of Real Estate Regulatory Bill and Land Acquisition Bill, brought some comfort among the builders and developers in the sector.

It is also likely that in the first quarter of 2014 the real estate sector along with other industries will remain have low performance. The inactive investors and end-users will wait for the right moment for a comeback. It is anticipated that post general elections the sector will look optimistic due to steady government, supportable policies, favorable RBI policies, growth in other asset industries, development in infrastructures and time bound completion of infrastructures.

May industry experts and veterans do hope that the second half of 2014 will be more promising not only for the sector but will also improve the economy as the general election will bring a steady political situation. In the Q2of2014, the demand in the affordable housing sector will continue to growth.
Views of Irfan Razack – CMD of Prestige Group
According the Irfan Razack, 2013 has been a year of inconsistencies with low economy condition and high inflation. Despite of the all cynicism, Bangalore Real Estate Sector did well in South India and across the country. He also added that the prices followed the inflation and the observed good impetus from sales and leasing.

He also stated that the post general elections with new political setting the second half of the year 2014 will be more optimistic and many sectors will start their business dealing robustly.

He also shared about the launch of Lakeside Habitat in Varthur by Prestige Group in 2014, which would be the largest development by the company that comprises of Disney inspired villas and apartments

He conclude saying that 2013 was a wonderful year for Prestige Group, which saw many milestones and we hope for optimistic and fabulous year-2014 for the real estate sector.

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