Real estate to have a paradigm shift in 2013
New Delhi- With the start of the New Year 2013, there have been various changes in the realty sector. Two crucial bills, i.e. the Real Estate Regulation Bill and Land Acquisition Bill were be passed in the year 2013. This will further encourage the stakeholder’s sentiments in the next few quarters.
This year will also initiate a new order for the country’s realty sector as per realty experts. The sector’s progress begins with the approval by the parliament of FDI in multi-brand retail. This will perhaps encourage and attract many foreign investments. The retail industry as well as the demand for the commercial real estate will be boosted.
This grave step by the government is another sign to show the government’s seriousness in initiating reforms in India. On the other hand, it is expected that the RBI might lower its interest rates in future benefiting the developers and consumers. These reforms by the government will have a positive impact on the realty sector be it residential or commercial.
However, the year 2012 was quite disappointing for the realty sector due to the declining sales and increased construction costs. This eventually has had a negative impact on the financial aspects of real estate firms concerning the rise and fall of their profit.
According to realty experts, the real estate outlook for the year 2013 looks quite promising in NCR regions. The areas with lower prices and the development of world-class infrastructure like roads, parks sports complexes and more will have higher appreciation and will be the hot spot of the realty market in the coming future.
Also based on the supply trends of the sector, there has been a state of flux with the supply of products priced below Rs 3,000 per sq ft is reducing markedly from 43 percent in 2009 to 8 percent in 2013. The supply in the price range of Rs 5,000-10 ,000 per sq ft is simultaneously expanding.
The key reason for these trends is aspirational and affordability levels. It is presumed that smart and experienced property investors will choose appropriate cities as the best options. People looking for long term investments can invest in properties in Bangalore, Hyderabad, Chennai, Pune, Noida and Gurgaon with their desired price range and an increased appreciation in the coming future.
Property experts state that areas in Dwarka Expressway, New Gurgaon-Manesar , Noida Extension and Noida Expressway have an increased potential for the end-users as well as investors in the coming future. Other areas like the Dwarka Expressway will be the hot spots for the investors due to their infrastructural advantages and locational benefits.
The price sustainability and appreciation trends of the recent past of these areas will attract investor interest and confidence. Manesar and New Gurgaon are not far away from being the hot spots for investors.
The NCR region will be the most popular investment destination in 2013 for reasons like the growth in commercial developments, the developing infrastructure,affordability along with connectivity via Metro and the expressway.
The Noida Extension and Noida Expressway will attract large number if investors due to the increased establishment of IT-ITeS companies along the Noida Expressway and its rental affordability when compared to rentals in Gurgaon.
Noida expressway is presumed to be a residential hub due to its infrastructure, easy accessibility and availability of affordable options. This is followed by good levels of absorption with appreciation in capital values in the year 2013.
The leading cities like Mumbai and Delhi will be overtaken by cities like Bangalore, Hyderabad, Chennai, Pune and Gurgaon.
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