Challenges in and the scope of the Real Estate Sector in India
Presently real estate industry is going through a midway phase between rapid policy actions and anticipatory development of the 100 new smart cities. By bringing in better policy frames; the sector is going through a transition & it may take a bit of time to absorb changes and galloping further.
The Residex Index of National Housing Bank points out that real estate prices in Mumbai have risen by 18.7% so as other major cities, between the end of December 2011 and March 2014.This despite the fact that the inventory of unsold residential homes has been growing dramatically. Another major factor was slow growing economy, high job loses & corporate expenditure cut etc.
Approving REIT is hoped to contribute extensive and extraordinary growth, accountability, and transparency in the real estate sector of the country. Having REITs are highly successful and favorable in about 20 countries of the world over, in respect of providing less risky investment options in real estate to small and big investors, regular and dependable income to the unit holders. This will help drawing massive FDI in the real estate sector and liquidity to the cash-starved property developers. In such scenario GDP contribution from real estate sector may increase to another 5 to 6% easily.
Mr. AlokTyagi, CMD of ATN Group in a press release highlighted further on the parameters which will help the real estatesector recover. “Leading boost up will be coming from BJP government’s conviction to develop 100 new cities as smart cities. PPP model infrastructure will reinstate stalled growth engine in all sphere. Lower inflation & interest rate, more job creation & price consolidation will help the sector to improve further. REIT Listing & fast track policy reforms from government will enhance the breakthrough. As the major home buyers are middle, upper middle income group & EWS depends on home loan. Last few years steep rise in home loan interest rate somewhat kept the actual buyers away from housing market or they hold back the investment plans. Now interest rate is set to reverse bit by bit as the overall inflation settles down. ”
Mr. Tyagi, the voice of the industry also suggested tips on how to find a good real estate consultant in the present scenario. “A good real estate consultant always understands the need of the buyer & his/her financial position then, future expectations and plans about the property usage. A good consultant knows the pros & cons of particular property, overall market scenarios & possesses longer term vision on the investment opportunities. A true consultant is trained to provide a thorough needs analysis and then offer responsible options in how those needs can be addressed. Customer’s requirements are multifaceted yet individualistic in nature; hence customized solutions are given accordingly. ATN provides tailor made solutions to its service beneficiaries. We offer bouquet of services starting from VOP (value, opportunity & price) analysis, loan feasibility study, market valuations for insurance, vastu consulting services etc. For ATN consulting is about offering quality, transparent choices, both in the types of services that you can receive and how those services can be paid for.”
Property portals came a long way in showcasing all class of properties across the globe. These real estate search engines definitely present a platform for buyers, sellers & tenants for fast & instant connectivity. www.Realtywing.com connects with a large number of real estate agents & clients across NCR. Commitment, timely execution & transparency to its channel partners & clients in displaying their properties & services, construct a win-win situation.