In 2015,Indian real estate sector witnessed regulatory changes that included
relaxing of FDI laws and the union cabinet approving the much awaited Real
Estate Bill.There are mixed reactions from realty experts on the regulatory
changes for the real estate sector, but broadly everyone sees it as a positive
move for the real estate sector.
Experts also believe that the rate cut of 50 basis points by the RBI in its
sep monetary policy review and the seventh pay commission released by the
government panel will boost the real estate sector in terms of increased
demand and supply.
According to a report investments into the REAL ESTATE SECTOR in 2015 ,at
close to $8 billion or Rs 53000 CRORE, are poised for a seven-year high
even when the sector is not in a good shape. The BSE Real Estate index
plunged 16 percent on a year-to-date basis till December 18.
Cushman and Wakefield estimates around $2.8 billion or Rs 18,700 crore
had been invested by private equity players in the real estate market
till end September.Add to that an estimated $4.5 billion, or Rs 30,500
crore , of NCD – till November 2015 and the tally is already up by 74%
over last year’s Rs 17,600 crore.
Realty experts believe that in 2016 will begin on a positive note for
the sector and may witness a pick up in sales with an improvement in
the number of unsold inventories.
Anuj Puri, chairman and country head ,JLL india said, “The past two
years reveal that the market has been adjusting to new trends in terms
of aligning supply with relevant demand. Developers are paying more
attention to the requirements of buyers and have started supplying
a higher proportion of mid-segment apartments that are priced in the
range of Rs 75 Lakhs to around a crore , particularly in tier-I cities.”
He further adds that although sales have been low throughout the past
4-5 quarters on account of low sentiment , there is of late a steep
rise in inquiries. That may be attributed to factors such as stagnant
growth in prices, lower ticket size of apartments (also resulting
from smaller unit sizes), consistent fall in interest rates through
2015-and,more broadly , an overall improvement in macroeconomic
factors.Given these factors at play,2016 could witness a more
balanced demand supply equation that should bring down unsold
inventories across major cities to a more sustainable level. Price
growth could remain subdued, although I anticipate a pick up in
Common Floor, co-founder and head of common Floor Groups, Vikas
Malpani sees the real estate bill approval as positive for the sector,
along with other trends could shape the real estate sector in 2016.
High demand for ready-to-move in projects and increase focus on
project completion will set the contours for the realty sector
outlook in 2016 . Prospective home buyers, who wish to buy a
house for self-use will look at property that is ready for
possession within one year.