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Friday, January 4, 2013

Indian Real Estate Expected Growth and Development in 2013

New Year 2013 is round the corner and Indian property market   is expected to shine. Real Estate experts are positive about increase in business activities. Read this article to know what’s in store.

The year-end is round the corner. 2012 has been a year of steep property prices that led to a firm fiscal policy. Despite the demand of easing out some sections in the monetary policy such as lowering the interest rates, the Reserve Bank of India (RBI) was unable to bring the key policy rates, considering the rising pressures of inflation. However, with the lowering of inflation and rates dropping, the Central Bank of the country has infused a cut in the cash reserve ratio. This has lead to positive vibes in the property market. 

Real Estate market of India was expected to have increase in sales during the festive season. However, there was a lull in the business activities in this sector. Property developers launched new projects but were unable to convert it into profitability. The coming New Year 2013, expected by the real estate experts, will bring back growth and increase transactions of properties. The government’s positive reforms will lead to rise in sale of properties. Experts also added that moderation of interest rates would be helpful in increasing realty demand. 

Will New Year 2013 boost development of the Indian Real Estate?

New Year 2013 promises to be a good and prosperous year for the Indian Real Estate. Property market watchers expect that long delayed Real Estate Regulation and Land Acquisition Bills will be passed. Even many sense that the Reserve Bank of India, in all likelihood will lower the interest rates.
One of the senior executives commented on the present conditions and remarked that with the approval of FDI in multi brand retail, government is appearing serious on starting new reforms for the realty sector. The central bank of the country is also expected to drop the interest rates. This will benefit developers and property buyers. Overall, such steps will boost sentiments of people and increase property sales. The present finance minister P Chidambaram had in recent times has asked the realty developers to sell their unsold inventory at a lower price.

The MD and chairperson of CBRE, one of the largest commercial real estate services firm globally said that residential prices of properties would have subdued growth until the unsold inventories are all eased out. Property market in the past few years were witnessing rise in prices of residential property. Increase in residentail prices is expected in destinations, which have infrastructure initiatives such as Greater Noida and Bangalore. Greater Noida will soon be linked to metro rail connectivity and this will increase property prices. Even in north-west Bangalore there is proposed metro rail connectivity thus influencing the prices of residential properties. 

Demand for Commercial Properties

The coming year will saw rise in demand of commercial properties. With foreign direct investment allowed in the retail sector, demand is expected in retail segment.  The chief executive officer DTZ-India said that Indian realty would see international brands in search of space in the country. Competing with the international brands, domestic Indian brands are also exploring newer avenues to establish their business. Property builders are anticipating the growth in demand of commercial units. Even the rentals in established retail hubs are also expected to rise.

According to Jones Lang LaSalle, the famous real estate and commercial property management firm informed that metropolitan cities of India will see the addition of about .5 million square feet of retail space in 2013.

The hot property destinations in India are given below:

•    Mumbai
•    NCR-Delhi
•    Bangalore
•    Chennai
•    Pune
•    Hyderabad
•    Kolkata

Foreign Investors attracted to Indian Realty Market

Realty experts are also hopeful of foreign investments in the Indian real estate sector this New Year. The uncertain Western markets and Euro zones showing lesser signs of revival, it is more likely to that, investments in real estate will find Indian property hubs. Indian realty market offers high returns on investments, both in terms of capital gains and rentals.  Indian property markets now have better real estate management services, which attract foreign investors. The coming year promises better times for investors.

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