Realty market upbeat in 2014?
No longer is the Indian real estate sector an unorganised one, thanks to the investments from foreign players and Indian corporate houses. Rapid urbanisation, increasing levels of income and opening up of the sector to FDI have resulted in phenomenal growth of the Indian market.
The multiplier effect of the real estate sector is what drives economic growth, and is critical for development. Being the second-largest employment generating sector after the agriculture industry, the real estate sector is estimated to produce 17 million job opportunities by 2025. The retail, commercial, and hospitality sectors have efficiently improved to meet the 6% housing sector contribution to India’s GDP.
The year 2013 was considered to be one of poor real estate growth for India, barring Bangalore, which grew as a result of right priced residential projects and renewal of economic drivers. The increased demand for houses is inevitable with a growing population, hence residential real estate remains the focal point of Indian real estate.
The latter part of 2014 will witness price rise because of infrastructural advancements in suburban pockets of Chennai and Bangalore, but for regions having well-balanced inventory and sale markets, the prices will remain stable.
There has been increased activity this year because the 2014 budget has made provisions for the affordable housing sector. Residential projects that are almost completed and fully finished have increased prices, as a result of increased demand. The recent stock market rally and the cluster of optimistic measures are sure to enable steady housing demand to be a constant factor in this year’s realty market.
According to real estate consultant DTZ, office space absorption for 2014 is said to increase by 7% to 29 million square feet due to expansion of cities such as Delhi NCR, Mumbai, Bangalore, Chennai, Pune, Hyderabad, and Kolkata. The government has now also allowed FDI contribution in developmental projects to a 100%.
Source: Moneycontrol
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