Hopes Center will bring quick reforms: reduce time taken for approvals, remove bottlenecks in the supply of raw material.
Given the positive sentiments that prevail in the economy and these are translating into increased demand for office space there is expectation that the residential sector will see an upward momentum in 2015.
Cushman and Wakefield (C&W), a global consultancy firm, said higher demand for office spaces means that more employment would also be generated, which will only add to the number of home-buyers.
C&W said the anticipated pick up in demand should show from the second half of 2015, though demand could be boosted earlier if interest rates are reduced and the Center introduces some additional tax sops in next year’s budget.
The report further said that in creased institutional purchase of a large number of units by investment funds is in the offing, as these have been setting up dedicated funds to purchase units in bulk during the construction phase and off load them once they are completed.
Developers, too, could increase the supply by launching more units if the Center provides the right incentives by reducing the time taken for regulatory approvals, removes bottlenecks in the supply of raw material, etc. On the whole, activity in the sector is likely to improve the report said.
Rajeev Bairathi, executive di rector (Capital Markets and North) of Knight Frank, India, said the residential and commercial market should do much better in terms of sales volume in 2015, compared to 2014.
Bairathi said the market is awaiting fresh triggers like reduction in interest rates, further improvement in buyer sentiment on the back of employment growth, and healthy double-digit growth in corporate staff compensation packages. All these factors are expected to improve affordability in 2015 and drive the demand for residential real estate.
Amit Modi, director of ABA Corp and vice-president of CREDAI – Western UP, said that the government should respond to one of the long-standing demands by giving industry status to the real estate sector.
Ajay Aggarwal, MD of Microtek, said Year 2015 looks promising at the moment with the Center unleashing a slew of reforms, with more in the pipeline.
Quick Fix: A new beginning brings new hopes, so will year 2015 for the real estate sector, experts say, adding that the sector deserves better attention from the government in the form of speedy policy reforms.
Source: Times Property, Dec 27, 2014