With the Indian
economy showing encouraging signs of recovery right from the beginning of the
New Year, both realty stakeholders and experts are betting the post-election
second half of 2014 to be the best time for our real estate market to re-surge
with all its might. To make out why 2014 is going to ensure a brighter future
for real estate investors in India, keep on reading!
Despite the year
2013 ending with a somewhat dismal realty scene, it is a new hope from the New
Year that is still keeping the stakeholders interested in the market! The
Indian real estate industry seems to have already forgotten the forgettable
last year and looks forward to make a fresh beginning in 2014.
Encouraged from
the initial hints of revival, experts and market watchers too have predicted
the second half of the year to come up with clearly noticeable changes. They
are presuming the General Elections to change the game and allure the investors
in most of North Indian, including cities like Chandigarh and nearby regions, especially
for those ready to make long term deals!
How will the General Elections Play a Pivotal Role?
Customer
confidence experts believe will be in a state of passiveness throughout the
first half of the year 2014. This can be attributed to improbabilities
associated with macroeconomic conditions, domestic and international, and the
general elections. It is immediately after the election phase that all inert
investors will come into action, allowing the real estate industry to boom at
its best!
Watchful Moves from Home-buyers
The residential segment
will remain moderate for home-buyers for the next four or five months. Despite
the fact that much price appreciation can’t be expected for now, the buyers
waiting for the right time will begin to finalise their deals in the first half
only, considering that the latter half is going to register definite
improvement.
Experts are
expecting the market to go upward in the beginning of the second half of the
year. This is when investors and end users will want to capitalise on this
chance of purchasing their dream flats
in Zirakpur or at any emerging city. Residential realty capita values,
obviously, will go high owing to a gradual stimulation in overall absorption.
What Other Than Elections will Change the Equation!
While it is true
that the Lok Sabha elections are going to be the real name of the game,
introduction of REITs, the due extension of the banking sector will be other
major factors to have remarkable, positive impact on the real estate market in
2014.
The next six
months will be quite deciding for the approval of new reforms for the expansion
of the banking sector. This will clear the way for corporate debt markets and
foreign competition, raising efficiency and boosting investments in the
financial sector. All these events will collectively have a great effect on the
realty market.
Healthier Growth in Retail and Commercial Segments
The second half
of this year is going to be positive for retail and commercial segments in
terms of a healthy growth. The expected fresh-supply addition of the commercial
office segment within major cities in India till the end of the tear 2017 is
over 140 to 150 million sq ft. All major enterprises will be confident to
invest in these expansion plans, causing the absorption of new office space to
increase by a huge margin!
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