Real estate experts predict that the year 2013 will be a boom year for real estate sector. In their opinion real estate sector will thrive in 2013.
Real estate sector had passed through a tougher time in 2012. Slow paced and declined market affected real estate sector in India. Low sales and increased construction costs adversely affected the real estate players and especially developers. In short 2012 was a very hard year for them.
Confederation of Real Estate Developers’ Associations of India’s (CREDAI) national chief Lalit Kumar Jain opined that the year 2013 will be a boom year for them. He seemed optimistic regarding the sector’s revival.
For them the year 2012 was a year of loss. He said that this was mainly because nobody initiated any corrective steps. He called 2012 a “lost opportunity” as this could be made a progressive one for them.
Chairman and Country Head of Jones Lang LaSalle India, a Real estate consultancy firm, Anuj Puri was even more confident. He seemed sure of real estate renovation. He stated that real estate boom will be more effective in 2013 second-half.
The Reserve Bank of India (RBI) has permitted commercial borrowings up to $1 billion. Reputable real estate developers as well as finance companies can raise equivalent funds through their external borrowings.
In areas like Noida and Navi Mumbai apartments priced between Rs.4,000-5,500 per sq. ft. were demanded mainly and largely sold. Bangalore too demanded for housing units priced similar. Meanwhile Mumbai faced better demand for homes priced Rs.16,000-19,000 per sq. ft.
Chairman of Knight Frank India Mr. Pranab Dutta said that the new foreign direct investment in retail policy (FDI) would play a significant role in the real estate boom in the coming year. It is expected to improve the commercial space demand to greater extents. Real estate sector may also be able to reap the benefits of new Regulation Bill and the Land Acquisition Bill in the coming year.
