Realtors eye turnaround in new year because of lower housing sales in 2014.

Q: After a slow 2014 marked with falling housing sales and high costs, developers are betting on lower borrowing costs and economic improvement for a turnaround in the real estate market in the new year.

Gurmeet,

2nd January 2015

Real estate News in Delhi

property market

lower housing sales

real estate market in new year

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Developers are expecting that reduction in interest rates and higher economic growth would be critical for revival in property markets, especially housing. At the end of the year, the government notified its decision to relax FDI policy for the construction and real estate industry by easing exit norms as well as reducing the built-up area and capital needs.

Lekshmi,

2nd January 2015

Comment

Foreign players also started showing interest in Indian property market due to lower valuations and hope of better returns after revival.
Japan's Tama Home announced construction of 12-18 projects at an investment of Rs 6000 crore in partnership with another firm Developer Group, which is promoted by Japanese investors but managed by Indian professionals.

Dwarkesh,

2nd January 2015

Comment

Developers are sitting on close to 30 months of unsold inventory in the mid-to-high-end segment.
Along with poor housing sales, realty sector this year witnessed adverse court judgements and regulatory orders against some developers including DLF, the country's largest realty firm.
In April, Allahabad High Court had ordered to demolish realty firm Supertech's two 40-storey towers in a Noida housing project. The two towers, Apex and Ceyane have a combined 857 apartments, of which about 600 flats were sold.

Lekshmi,

2nd January 2015

Comment

Private equity investment in the realty jumped more than two-fold to Rs 8900 crore in January-September period and the figure is likely to cross Rs 12000 crore by year-end. CREDAI, chairman Lalit Kumar Jain said that this year was challenging and was worst in 5 years in terms of sales.

He also noted that the realty market would be better next year in terms of sales if interest rates go down and the government brings reforms like single-window clearance, online approvals for projects, lower taxes and permission for building more area on a land parcel.

Dwarkesh,

2nd January 2015

Comment

These did not have an immediate impact on the market, but realty firms and property experts believe that the interest of global investors would wake up in the slow property market with these two measures.

The year also witnessed some big-ticket property deals and increased investors interest in realty portals.

Lekshmi,

2nd January 2015

Comment

Even they tried hard to speed up the demand by offering discounts and relaxing payments schedules but it did not help as home buyers kept waiting for correction in prices and interest rates.
In the middle of these negativities, some positive announcements came from the new government in form of approval for Real Estate Investment Trusts (REITs), relaxation in rules for foreign direct investment (FDI) and setting up of 100 Smart Cities.

Dwarkesh,

2nd January 2015

Comment

It is just like 2013, cash-starved developers faced the problems of huge unsold housing stocks and buyers' protest against delay of up to 6-7 years in delivering projects, forcing them to focus on completion of projects instead of launching new ones.

Lekshmi,

2nd January 2015

Comment

yes, developers were hopeful that property market, which has been witnessing slowdown since last few years, would be back on track in second half of 2014 on improved sentiments after the new government came to power but that did not happen and rather housing sales were slow even during festive season.

Dwarkesh,

2nd January 2015

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