Next 6 months
REAL ESTATE LOOKS
FOR REAL CHANGE
By Garima Sabharwal
One of the major sectors that is looking for a big change in political environment and hoping for better tomorrow is the realty sector which has been facing many ups and downs since 2005 and we can say it has taken a southward movement since mid 2008 on the back of a global economic slowdown and the 2008 crash. It is a foregone conclusion that the real estate sector plays a pivotal role and pushes huge growth in our economy.
Though this sector has always been unorganized since a very long time, now all the players are looking for a change and want to be organized and maintain transparency. Here are some of the difficulties which Indian realty sector is facing and want it to be rectified by new and stable government: Lack of clear land titles, shortage of labour, approvals and procedural difficulties, absence of industry status, etc. The established domestic players in this sector are DLF, Unitech, Hiranandani constructions, Godrej properties, Tata housing, Omaxe, Parsavnath, Ansal Properties, Mahindra lifespace, Raheja developers and many more.
It will be quite interesting to watch if the real estate sector can get ‘modi-fied’ in time to come as large number of population wants Mr. Narendra Modi as the Prime Minister. One may recall that at the time of Mr. Atal Bihari Vajpayee’s government, a lot of importance was given to the development of real estate and infrastructure that gave a major boost to our economy. They took some policy measures like low home loan rates, tax relief on home loans and the famous national highway development project (which contributed significantly in the growth of economy with the record of 67 million jobs).
According to the latest FICCI and Knight Frank report there has been positivity in the mood of people for this sector. Majority of people and financial institutions are quite bullish about the future of economy and the funding scenario. They are expecting a big and positive change in the business environment in coming time.
Figure 1: As poll results are ahead i.e. on 16 May, the country is looking for positive uptrend in realty sector. Though the current scenario is 47, which is below 50 and comes under pessimism but still if we see the positive side it has gone up from 33 which was in Q4 2013.
Figure 2: It shows the zonal sentiment. If we see optimism has increased in all the zones (north, east, west and South) and if we compare it south zone has come up with good numbers.
Figure 3: This shows that both developers and financial institutions are looking positive for future uptrend in coming 6 months.
On the whole, the majority of people who have been surveyed are bullish about the future of the economy. Residential Projects launch and sales volumes are expected to grow in the coming 6 months. Stakeholders are expecting an upside movement in leasing and almost 87% of people are expecting that office space rentals may also see some growth.
(for the complete report).