Real Estate 2015 to bring more good news to home buyers

The year 2014 has been quite fruitful for the real estate sector in India in terms of business sentiments. The real effect of many of the policies and amendments announced in 2014 will take effect in 2015, says Anuj Puri, Chairman and Country Head of Jones Lang Lasalle, India.

Starting from Union Budget FY2014-15, where affordable housing was considered on par with infrastructure, to relaxation of rigidity in the Land Acquisition and Real Estate Regulatory Bill, the Indian real estate sector is receiving consistent doses of energy, he says.

Also, REITs are to hit the market at last, and only a few details need to be sorted out before they get the funding wheels spinning. The winds of change are now blowing more perceptibly and 2015 will definitely be a good year for the real estate sector on three counts:

The threat of inflation has completely submerged, and borrowing rates are to go down. Property prices staying stable and good deals being offered by developers in order to clear their inventory, fence-sitting home buyers will be finally encouraged to press the ‘buy’ button.

Economic activity is gradually picking up, and the GDP growth is to reach 6.5% y/y in the next financial year - FY2015-16. As per few reports from recruitment agencies, corporate India will be hiring more of talent due to the rising business activity in 2015. Put together, this means a very favourable market for both residential and commercial real estate.

The developers are finally coming in with the kind of supply that is relevant to demand. They are now largely focusing on affordable homes. This will go a long way to bridge the existing wide gap between demand and supply of affordable homes, Puri concludes.