DEVELOPERS FEELING POSITIVE FOR A SUCCESSFUL 2015
After a series of ups and downs in the sector this year, the overall observation came out to be positive with the formation of the new government and its plans and executions for the sector. The first two quarters of 2014 saw a big slump with investors running the market dry and end users unable to settle in. As we reached the half way mark, the new Modi led government had stabilised and was looking promising. In the new budget, the biggest decision of ‘housing for all’ was declared, and this has been widely worked upon by the authorities and private players. The recent HUDA and DDA housing schemes were immensely welcomed by the public and it witnessed massive applications base which was the real demand for affordable housing. Supporting no less Mr. Pradeep Aggarwal, Chairman, Signature Global believes that, “The last few years were devastating for the sector as buyers were not visible at all. The real reason was the wrong demand analysis in the sector and buyers were ready to buy affordable homes and thus a prominent picture came out with these government housing schemes. Those who missed out on this opportunity created a ripple effect of demand in the regions and thus, enticing the developers to work greatly on this concept more. The demand has been now pulling back and sales are looking at an upward graph. With this, the upcoming year is looking brighter than ever and there is ample of support from the government as well”.
Apart from housing schemes, a lot of policy and structural changes are in pipeline which will benefit the economy and sector in general. The changes made for FDI in the sector; the execution of REITs, real estate bill to be active soon and other such decisions has created a solid platform for the development of the sector in the country. Mr. Ashok Gupta, CMD, Ajnara India Ltd. says “The public and private players have done a great deal to revive this sector after a prolonged depreciation. The government had initiated several measures and eased norms for the sector as it is imperative to understand the value of these. REITs are advantageous for both; the real estate sector of India as well as investors. It helps in providing a secure, sound and good investment opportunity for the HNI investors in especially commercial properties and also offers an exit route for the developers. At the same time, relaxation of FDI norms is again a crucial step for attracting capital in the nation. The real estate bill is expected to be put on the table next year. Therefore, we have a series of plus points coming out from the last year and gearing up for the New Year as well”.
Real estate in every region is successful only when infrastructure is sound enough; and this has been greatly anticipated by our reigning Prime Minister who himself was on toes and made several foreign visits to attract FDI for infrastructure and other sectors. Mr. Arvinder Singh, MD, Agrante Realty Ltd. expresses “Seeds of yesterday are fruits for tomorrow. Infrastructure is considered to be the backbone for any region to successfully execute real estate. This year, post government formation our PM had visited several leading economies of the world and got a promise of millions and billions of dollars for the development of the nation’s infrastructure. This FDI will help the infrastructure to shape up in a better way in future and will help the market to respond better than ever. The demand will increase as standards of living will be improved and better civic services will be at public’s disposal. Thus, upcoming year has a lot to offer to the society and the nation in general”.
The sector is getting back on track as the pre/post Diwali festive season saw good amount of sales generated and with so much promise from the government’s end, the upcoming year will be full of surprises for the buyers and customers. Several developers are gearing up to launch new projects and hand over the possession as well. At the same time, the unsold inventories from this year might not see a rise in price due to easing of norms and decrease in inflation. This will add onto the demand for the sector and might help the home buyers to choose the right property at the intended price. Mr. Rupesh Gupta, Director, JM Housing says “This year several projects around the country were complete but went unsold due to steep rise in prices. With inflation coming under control and RBI easing lending options for the public, purchasing a home will not be a dream anymore. In the upcoming year this will be one of the highlights of the success of the sector as prices might not go north and will remain stable. At the same time, with overall plan for development is looking very sound the upcoming years will be highly rewarding for the sector and country”.