Bengaluru, January 13, 2016: What initially happened as a positive outcome by the end of the financial market of 2014 has now, perhaps, taken a slightly upheaval within its relative course.
Statistically speaking, important events like banks lowering interest rates, RBI offering incentives for infrastructure financing and creation of real estate investment trusts (REITS) were one-of-its-kind initiatives that real estate developers cheered during 2014 and towards the welcoming of 2015.
The two most remarkable events were unveiling of ‘Make-in-India’ campaign and relaxation of FDI norms in construction sector has also brought in a lot of optimism into the sector, which is most of the times riddled with controversies. This scenario was noticed to overshadow the entire tenure of real estate markets for the entire year of 2015. Quite remarkably, the graph of the home-to-home sales has had an enormous rise in continuum, throughout the year.
We may relate to what rediff news tries to expose in order to get a notch of how markets travelled in the ‘glorious’ 2015 – “Unlike conventional market trends, residential plots are gaining prominence amid property buyers. Buyers prefer to buy plots for attractive returns in the mid-to-long term horizon.
This can further be justified by the fact that they are now considering upcoming smart cities, where apartment culture is yet to catch pace.Also, for the development of these smart cities, smaller areas in the peripheries are being identified. As this concept is yet to take off in most areas, plots tend to have become a strong investment option.
In consideration with the given information on various economic updates, what did seem like a rise for the growth in the estate sector, is believed to be lowering down which shall effect the whole of 2016. So to
speak, the relativity of desired market lifts is seen to drop down since there is a calculative ‘southernnes’ to the additions of market-rise.
Quite obviously, there cannot possibly be a fall of 30% (which was the initial assumption) because that can only happen with the equity in chances of recession. Nevertheless, the government happens to have pass 20 successful amendments to the real estate regulatory Bill that seeks to protect homebuyers as well as help boost investments in the real estate industry. With the initiative towards building an international airport in the Jewar district of Greater Noida, the uphold of maximum realty producers had a temporary glitch even though now with a considerable amount of help from the government and also from the consumers, a hope sustains that eradicates the possibility of yet another ‘dull’ year for the markets.
In a bid to increase the money flow into the fund-starved sector, the government had recently opened up the FDI window.
Somehow, towards the concern of realty markets, from a developer’s perspective – changes such as the need to compulsorily deposit 50% of the amount collected from buyers into an escrow account for construction
activity are significant. Furthermore, commercialization, ongoing projects and those that have not received completion certificates will now be covered under the Bill whereas this too is a perspective. What eventually will become a standpoint for the estate markets (whether positive or negative) is yet to be presented in the coming year.
Corporate Comm India(CCI Newswire)
