Hey Guy's
The Union Budget 2015 may have disappointed most the builders and the developers around the country as the finance Minister did not announce any measure to benefit either demand or supply in the sector. But the increase in service tax can effect the market too. The only positive thing that come out of the budget 2015 for real estate was the tax clarification on REITs. But the market participants will always hopeful and have a positive outlook for the year.

Shaunak Verdla, Mumbai

15th May 2015

Comment

This overview clearly indicates that in coming few quarters a strong sales activity in housing market is about to start. The present importance of RBI to keep inflation in control is limited to bring inflation under the required comfortable levels. After that with the help of policy measures, the housing sector in India is about to witness a little jump over in demand.

Kashif Ahmed, Delhi-NCR

15th May 2015

On the other hand Benami Transaction Bill is a big positive sign for real estate sector. This measure is sure to bring in some much needed transparency in the sector. This would bring relief to the home buyers who had nothing in particular to take away from the Budget.

Shaunak Verdla, Mumbai

15th May 2015

@Shaunak,
Well, this might have a negative impression on the investor emotions in the country. Though the objective of the government is positive, the Benami Bill might just result in the investors to exit the market.

Kashif Ahmed, Delhi-NCR

15th May 2015

@Roshni,
What i am thinking is that any effect brought in by REITs on the real estate market will, however, take a long time to implement. It will take at least 3-4 years to become an effective instrument in the Indian real estate sector. However, it will definitely gain popularity among developers and investors over mid- to long-term.

Praveen Modi, Mumbai

19th March 2015

Comment

But as per me if you plan to buy a property, look for ready-to-move in projects as inventory is still available. If you plan to take a home loan, it makes sense to wait for lending institutions to reduce interest rates.

Anuskha Chandan, Mumbai

19th March 2015

Actually , the outlook is positive for the Asia-Pacific region as well. As per CBRE South Asia Pvt. Ltd. rapid urbanization, demographic growth, an expanding middle-class and increasingly wealthy households, economic growth in Asia-Pacific region will remain ahead of the world average in the coming year. It will translate into stronger demand for high quality property, especially suburban retail malls and residential housing.

Roshni Pawal, Mumbai

19th March 2015

Comment

At the same time it is also projected that the projects an economic growth rate of 4.4% for the region, versus 2.9% globally. CBRE estimates the overall investment turnover in Asia-Pacific to increase by 5% year-on-year to $118 billion in 2015.

Praveen Modi, Mumbai

19th March 2015

Right Praveen,
According to numbers released in February, gross domestic product (GDP) growth was 8.2% and 7.5% in the last two quarters of 2014. For the current financial year, the government expects GDP growth at 7.4% compared with 6.9% in the previous financial year.

Roshni Pawal, Mumbai

19th March 2015

An estimated US$1 trillion is being spent on infrastructure over the 5 yrs. to 2017 and there is increased investment in industrial projects by the government. But it is the private housing sector that the PwC report highlights as a key growth area.

Praveen Modi, Mumbai

16th March 2015

Comment

Right Praveen,
Demand for real estate has been one of the drivers of construction sector growth over the last 10 yrs. Upgrade in economic conditions has the potential to drive demand for real estate, as housing continues to be a preferred investment asset among Indian households.

Jay, Delhi-NCR

16th March 2015

Right jay,
The residential sector, comprising residential buildings, townships, schools, colleges and hospitals and other projects, makes the maximum overall contribution in the real estate industry and commands the largest part of its market share. In India, real estate plays an important role, from affordable housing to infrastructure and generating employment.

Shreya Agarwal, Mumbai

26th June 2015

From the point of view of the government policies, the year stood out. The new government took some landmark decisions like relaxing FDI norms in the construction sector, providing easier and cheaper loans by granting low-cost housing infrastructure status, allowing Real Estate Investment Trusts (REITs) for commercial real estate. The reduction of excise on cement and steel has managed to offset the rising input costs.

Miraniyatin, Mumbai

10th March 2015

Comment

Well Mirani,
The government is also aiming on passing the Real Estate Regulation Bill through parliament, which will help in protecting the rights of consumers and investors. Factors on the demand-side are fundamentally positive, although some micro markets are going through routine corrections. The spurt in urbanization has been driving the demand for housing in Tier I cities but a shift has also been witnessed towards Tier II & III cities like Pune, Nashik, Pantnagar, Rudrapur, Patna, Chandigarh, Ranchi, Jaipur, Indore, Baroda, Surat, Mangalore, Mysore, Coimbatore, Trichy, Bhubaneswar, amongst others.

Ramakrishna, Hyderabad

11th March 2015

You are right Devika,
It is also observed that luxury housing is registering maximum growth, owing to increasing High Net-worth Individuals population and growing hopes of people looking for luxury lifestyle. The real-estate developers are also focusing on luxury housing, due to high profit margins available in this segment.

Praveen Modi, Mumbai

10th March 2015

Comment

The Economic Survey of 2012-13 declared housing to be the 2nd largest industry that generates employment, after agriculture.
With more than 300 linked industries like steel, transport, construction, cement and brick, real estate contributes significantly to the country's GDP share and capital formation.

Devika, Mumbai

10th March 2015

Hi all,
The country will see increased economic growth, and the removal of barriers to foreign investment will catalyst demand for construction over the coming 12 to 18 months. With a new government having been formed at the Centre, with a strong mandate to stimulate economic growth, the outlook for the sector appears positive.

Kashif Ahmed, Delhi-NCR

8th March 2015

Comment

It is observed that observed that the Indian housing industry has shown strong growth over the past few years. Furthermore, with continuously rising population, growing hopes, increasing nuclear families and rapid urbanization, the housing sector in India is awaited to register a strong growth in the coming years.

Devika, Mumbai

10th March 2015

Absolutely right,
Corporate investors benefit from tax exemptions. It largely impacts small investors and encourages proper investment channels in large real estate accounts, and is a better alternative to investing in stock, due to its higher returns and a diversified portfolio of investments. Blackstone, Xander, Brookfield and more real estate funds intend to launch REITs in the country and DLF, Phoenix and Prestige are expecting to make use of this huge opportunity.

Baldeep Singh, Gurgaon

7th March 2015

Comment

@Deepankar,
I think REITs will have a huge impact in 2015. It is an internationally tried and tested strategy, especially in the USA, Taiwan, South Korea, Singapore and Australia. An REIT is a trust that buys, sells, develops and manages income-generating real estate property such as malls, commercial office spaces and more, with the main intention of attracting investors who can manage an interesting array of properties.

Ramdas Palsule, Pune

7th March 2015

Comment

@Dayananda,
ProjectVendor.com projects a 10 to 15% increase in growth from FY14 to FY17 and 11% growth in FY15. Residential and commercial projects, organised retail will contribute to this growth significantly.

Real estate construction market is poised to grow by 20% between now and 2017.

Both large and specialised players stand to benefit and gain equally.

Deepankar Godbole, Mumbai

6th March 2015

Comment

@Anirudh,
The Planning Commission estimates that by 2030, about 600 million people will live in cities. Affordable housing therefore is a huge demand and the industry has a large gap to meet, with shortage seen among the low income groups. International agencies like IMF and World Bank predict an increase in GDP.
Real estate market is driven largely by sentiment. First half of 2015 will be largely recovery with property markets.

Dayananda, Mumbai

6th March 2015

Comment

Fine Anirudh,
According to the National Housing Bank (NHB) Residex Index, residential property prices show an upward trend in the second half of 2014. Needless to mention that 2015 will largely be about recovery. The RBI has cut interest rates and this will see more spending in the residential real estate segment. The Ministry of Statistics Program and Implementation and PwC Analysis predict a growth of 8 to 9%.

Bikram, Mumbai

5th March 2015

Comment

Right Bikram,
But the introduction of REITs, improved market sentiment and more efforts by the government to reduce project loopholes and bottlenecks in transactions will go a long way in clearing the way for positive trends in 2015. In India, real estate plays an important role, from affordable housing to infrastructure and generating employment.

Anirudh Patel, Mumbai

5th March 2015

2015 will definitely be a good year for the real estate sector on three counts: 1) The threat of inflation has completely down, and borrowing rates are sure to go down from the current levels. This will encourage potential buyers planning to avail of home loans to finally take the plunge. Also, with property prices staying stable and good deals being offered by developers in order to clear their inventory, fence-sitting buyers be further encouraged to press the buy button.

Anirudh Patel, Mumbai

5th March 2015

Comment

Secondly, Economic activity is gradually picking up, and the Central Bank anticipates GDP growth to reach 6.5 % y-o-y in the next financial year (FY2015-16). Corporate India has already made it clear that there will be more hiring of talent to help gear rising business activity. Put together, this means a rise in jobs and incomes, which in turn is very favourable for both residential and commercial real estate.

Anirudh Patel, Mumbai

5th March 2015

Third and the most important is that the market has witnessed a re-orientation and developers are now largely focusing on affordable homes. This will go a long way, though definitely not all the way, in bridging the existing wide gap between demand and supply of affordable homes.

Anirudh Patel, Mumbai

5th March 2015

Right Anirudh,
Positive market sentiments and favorable economic environment have brought in a lot of optimism back into the real estate sector in 2015. Important events like the Reserve Bank of India (RBI) lowering interest rates, unveiling of ‘Make-in-India’ campaign and relaxation of FDI norms in construction sector, have made the real estate sector once again a lucrative option for investment

Niyati Juthali, Mumbai

26th June 2015