Developers Hopeful of Realty Market’s Revival in 2014
Real estate developers across the country are optimistic about good sales in 2014. Last year proved to be dull wherein depreciating rupee, increasing property prices and high interest rates affected sales to a large extent. However, builders are hopeful that, post the general elections, sales will pick up due to stability and transparency in property regulations.
Key Initiatives Leading to Growth
Post Elections this year, two key government initiatives are expected to boost the realty sector. These initiatives include the proposed Real Estate Regulatory Bill and the new Land Acquisition Act. The Regulatory Bill is expected to make the real estate sector more transparent and accountable.
The Land Acquisition Bill, which came into force in January, has attracted both criticism as well as support. Developers complained that the provisions, in the current form, were more in favour of farmers and consumers and it may cause delays in land acquisition and developing projects. It may also enforce property price escalations since the compensation for the acquired land is high. However, it is also the need of the hour as there have been several instances of forcible land acquisition in the past.
The real estate sector has welcomed the market regulator SEBI’s draft guidelines for allowing Real Estate Investment Trusts (REITs) and the proposal by Ministry of Commerce for relaxing FDI norms. Once these steps are implemented one can expect reviving global investors’ interest in the current sluggish realty market.
Major Improvements Expected in 2014
Market experts say that all the areas that have good social infrastructure and connectivity will witness maximum development this year. Post general elections, the new government will have the mandate to create new job opportunities as well as bring the country’s economy back to normal. There are also hopes that the new government will take responsibility to bring the country a handsome growth rate.
