Indian Realty Has More Room for Improvement - Raja Aristos News

Though 2013 proved to be a roller coaster ride for the Indian realty sector, towards the end the chances were favorable for a recovery, and it is expected to continue in 2014 as well. As of now, the sector is on the verge of a recovery, but not yet arrived at a safer pace.

However, both developers and customers are confident of further improvement especially after the upcoming general elections.

What is expected of 2014? Many experts point out that certain problems are likely to carry forward as they are unresolved, mainly during the first few months.

The prevailing problems include high levels of inflation, delay in project completion and delivery, financial fluctuations, unsold properties across the nation and reduced consumer interest.

Amidst the challenges, one respite was that the last year saw increased funding from NRIs into realty, yet, didn’t bring in the expected results.

Therefore, the time calls for reformatory actions from the Government, and there is hope that it would happen with the upcoming budget.

The budget would be realty friendly if more funds are allocated to the sector, by the new government taking charge post elections. Yet, the possibility for these expectations to revise cannot also be ruled out. Therefore, a lot depends upon the budget.

There have been attempts to correct the issues in 2013, in the form of new policies and regulations into sector, examples being the ‘real estate regulatory bill’, ‘land acquision act’ etc.

Though there are positive aspects, there are drawbacks with both these reforms, as both are likely to increase the construction cost to a very great extent.

The implementation of REITs, or the Real Estate Investment Trusts, seemed to be a well thought after decision, but it is yet to see whether it would bring the desired results.

The REITs were considered as an attempt to enhance the transparency in the sector. The Trusts, failed during the initial formulation owing to the economical imbalance. Therefore, the focus should be on not letting it happen again.

The escalating prices prevailed throughout the year 2013, and continue to affect this year’s realty prospects as well. The high prices forced buyers to wait for favorable times which significantly affected sales across the nation. Inventory pile-up was happening in a rapid phase and there were delays in new launches.

Experts are concerned that these issues might prevail in 2014 as well, in the first few months for sure. As the year progress, a reduction could be possible with less number of new launches.

Buyers are predicted to show alertness towards properties, say recent reports. All in all, housing markets are anticipated to observe steady capital values excluding those projects that are over-leveraged.

However, Indian realty sector continues to retain its global perspective as a great investment option and the on-going and upcoming infrastructure projects might enhance the status of Indian Metros as great housing options.

Indian realty sector is a great option, and with the right measures brought in, its image on the global level is likely to remain the same.