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Q: Real estate may bounce back in 2016.

jitu jayswal,

7th January 2016

Real estate News in Mumbai

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Replies (4)

I agree with Bikram! While the real estate market looks to bounce back in 2016, a person looking to invest in the market definitely needs to be careful. It is important to choose a company that has a strong track record in the real estate market with strong financials and delivery of promises. Companies like Mahindra Lifespaces, Indiabulls, Lodha etc have been around for a while and have earned their reputation in the real estate market. The Vivante project by Mahindra Lifespaces is expected to be one upcoming projects to look out for. With its strong track record and exciting designs and amenities it definitely seems like a good option to consider.

Aarav Sharma,

1st February 2016

Comment

Yes, and according to me regulatory bill will boost confidence among the prospective buyers. We may also see some consolidation between unorganized and organized players in the industry. Relaxation of FDI and ECB norms should boost real estate investment during 2016 since it provides exit routes. Affordable housing will still play a major role with sustainable demand from this space.

Bikram, Mumbai

18th February 2016

Right Bikram, And i hope that demand to pick up in Bangalore and Mumbai Metropolitan Region. people have already begun looking at markets like Hyderabad and Kolkata which were not doing well in the last year. However, i expect the pressure to continue in Noida, Navi Mumbai and Ahmedabad.

Sishir,

18th February 2016

So, If you are planning to invest in real estate stock in 2016 then you should prefer a company with fair past execution track record, strong balance sheet, regional spread, quality land bank and a company with ability to generate strong cash flows.

Bikram, Mumbai

7th January 2016

Comment

Hi all,
That was the reason for inactive activities and lowered prices in the realty sector. On account of unaffordable prices coupled with high interest rates and low rental yields, people continued to avoid real estate as an investment in 2015.

Nikhil Agarwal, Delhi

7th January 2016

Comment

Yes, and if we take the advice of market experts, there has been key policy related progress in the real estate sector like the Cabinet approval of the Real Estate Bill and systematization of tax structure for REIT listings in 2015. Hope, these steps should bring back transparency in the sector, as well as consumer and investor confidence in the long run.

Bikram, Mumbai

7th January 2016

It is realty. We may also see some consolidation between unorganized and organized players in the industry. Relaxation of FDI and ECB norms should boost real estate investment during 2016 since it provides exit ways. Affordable housing will still play a crucial role with sustainable demand from this sector.

Sishir,

7th January 2016

On the other hand, we may see pickup of sales in the affordable housing segment in 2016 due to reduce of interest rates. The high end segments will take time to recover. Some cities may also see major growth due to increase in urbanisation and industrialisation coupled with the government's smart cities initiative. So one has to be city specific to take a well-informed call.

Nikhil Agarwal, Delhi

7th January 2016

Hi Jitu,
Data indicates that during 2015, the BSE Real Estate index wiped off the gains of 2014 as the index dip nearly 14% to 1344 on December 31 from 1555 on December 31 last year.

Sishir,

7th January 2016

Comment

Hi Sishir,
And the index gained 8.5% in the previous calendar year. Among the real estate majors, the share price of Unitech down the most 60% in the previous 12 months, followed by Sobha Ltd down 36%, DB Realty down 20%, Prestige Estate Projects down 19% and DLF down 15%.

Bikram, Mumbai

7th January 2016