Indian real estate market 2016 is expected to be heading for a steady revival, says said a research report by JLL India and Royal Institute of Chartered Surveyors (Rics). Approx 70 percent of real estate investors are expecting an improvement in sales in next 12 months and 43 percent expecting an increase in number of successful exit. While Mumbai and Bengaluru will continue to be the must preferred destinations for investment, commercial office and mid-segment residential property is expected to be the top two preferred asset classes by investors, the report said.
Delhi NCR real estate has not been included in the list of top 5 real estate investment destinations in a report by Prop Tiger, however Noida property market is expected to see a rise in sales due to the construction work of metro going on a fast pace.
What about property prices in 2016, will they go up or fall or stay stable ? Buyers are expecting more and more discount yet not convinced and developers are saying that they have already reached to the bottom of barrel. In past years the prices has already come down by 15% though construction cost has remained same. Steel and Cement prices may have come down but labour rates has increased and so has the land prices. So, the answer of questions remains NO.
About affordable buying, the developers say that, they are already offering various offers and payment plans like 20:80, so its already in the budget now. On the other hand buyers are expecting the developers to promise timely delivery of projects. With real estate regulatory bill, a lot of these issues are expected to be solved. Also, the buyers are more focused on good construction quality and ready to pay for it. It can be inferred from the market scenario that, projects of developers like Tata, Godrej, Mahindra, ATS, Prestige, Sobha Projects are priced 10-15% higher in any market and they are selling, albeit slower than before. All these developers are the one with good track record in real estate market.
About more than 7 lakh unsold inventories and the projects being treated as leftover lying idle, the developers say that, the focus has now moved from new launches to delivering the existing ones. There has been a significant drop in new launches in 2015. Rethinking over the ongoing projects can be considered as positive aspect of slowdown in Indian real estate market.
In brief, we can say, that year 2016 can be expected as a revival for Indian real estate market. Buyers must take their step ahead and grab the deal of their choice as the market is going to get better now.
Few of the challenges in the market have bottomed out and we can expect a turnaround in the Indian real estate market. No doubt it will be slow in next 12 month but it will be there. Investor sentiments have improved and there will be a greater balance between demand and supply.
Report Source: JLL & ET; Image : Google
Post By –
Alok Kumar Upadhayay