Investor activity in the real estate sector , which had reduced to a lull
over the past three years ,is finally set for an uptick in 2016 riding on
regulatory reforms, say analysts.
This year might also be a good time for prospective home buyers to lockin
as prices stabilise,but delays in delivery and unaffordability are dampeners
to the revival of consumer sentiment.
”Real estate industry is cyclical and we anticipate that we are at the end
of the cycle of slowdown .The wave of positive sentiments is quite evident
and recovery is getting stronger .With the real estate regulatory amendments,
credibility and positively is building up confidence in the minds of investors
who will sooner or later get drawn back into the market,”said Mudassir Zaidi,
national director,residential agency ,Knight Frank India.
He expects the property market to consolidate positively in terms of volumes
over the next six months.Following this,prices are likely to see muted increase
& developers will get confidence to increase prices as demand picks up and
stabilises.”Therefore,this is the best time to buy,”Zaidi said.
However,to revive the consumer sentiment,developers will have to improve
delivery of incomplete projects and reduce prices.They also need to clean
up their balance sheets by de-leveraging to foster more confidence among
investors and allow more liquidity options.2015 proved to be an exciting
year for the industry with government starting the process of initiating
policies that will sustain the growth of the sector.
The sector witnessed increased appetite among well-researched institutional
investors betting big money on the revival and experts believe this is the
precursor to an inflection point.2015 has seen revival of interest from
private equity investors in real estate with highest investment in the last
eight years recorded at approximately $2.8 billion.
In 2016,we can expect to see the momentum continue and also anticipate the
buoyancy already witnessed in the office sector to trickle down to the resi-
dential market in the medium-tolong term,visible in terms of an uptick in
sale of units,”Sanjay Dutt,India MD, Cushman & Wakefield.