Realty will be on the road to recovery in 2014
As the Indian realty market buckles up and enters 2014, positive vibes spark among the developers and builders of an overall change in the real estate landscape. As per positive economic data across different cities, the Indian realty industry, which has been reeling under a ‘hefty’ debt amount and poor sales volume, is likely to witness a significant change, as economic recovery takes hold in 2014.
Given the market reports, consumer confidence is expected to be under wraps for the first two quarters in 2014, much of which can be attributed to uncertainties encompassing general elections. Post the elections, the realty sector is expected to be brimmed with good news, as the fence-sitting investors chip in with positive sentiments. Although, the prospect of an unstable government has led the banks and financial institutions to keep on their toes, strong investment fundamentals are likely to find their way in the market once the uproar with the next government meets the tail end.
Why the developers are pessimist about 2014?
Answering the critics as to why the sector is expecting revival in 2014, even though the upcoming elections in the year will slack-off the approval process, developers quote that government aid will change the tide for the industry in the present scenario. The Union Budget 2014-15, is one of the most-awaited move in this regard that will offer support to revive the fortune of the industry.
Stable demand for affordable housing and a rise in demand of premium properties in cities like Bangalore, Mumbai and NCR has given the developers another reason to cheer in 2014. In addition to such reason, the framed policies of 2013, like the Real Estate Regulation Bill and draft guidelines on SEBI(reit) Regulation 2013 are expected to write a new fate of the sector.
Indian real estate will get a helping hand in 2014
With the advent of the regulator in the sector, the Indian real estate scenario will get the much-awaited makeover. Murky functioning and lack of corporate governance, which has crippled the industry, making the global investors apprehensive about the Indian realty sector, is expected to rule out in 2014. In addition to it, the Land Acquisition Act will make sure fair compensation to the landowners and put down the curtain on trust-deficit, protest and judicial intervention, which often stalls the project.
As per property consultants the slowdown in the economy (fall in current account deficit from 4.9% of GDP during April to June to 1.2% of GDP in July-September period) has imparted a crucial lesson to the developers that was much needed-define demand before any new launch. Holding this phenomenon true, the developers will move ahead in 2014 with the right product at the right cost in the right target market.
The learning and experiment in the Indian real estate market after the global economic slowdown, has managed to put the sector on the right track to recovery. The realty sector, in and out, is sentiment driven, hence, the change in sentiments that will crop up after the General Elections and Union Budget will alter the sales velocity in the market significantly.
