The previous year was an exciting year for the realty sector. Numerous new guidelines were issued by the government which, optimistically, the industry players feel should come into strength in 2016. One of the most important declarations by the government is smart cities, relaxed Foreign Direct Investment (FDI) norms, State Regulatory Bill, etc. Real Estate professionals are of the view that these plans when executed will propel development in the sector.
Will the sales in Real Estate Market improve this year?
This sector has suffered much hurt in the last few years is moving on the way of more balanced regime where builders, having learnt from their faults, now concentrate on development finishing and delivery. 2016 is projected to slowly but surely move towards high demand of homes and witness a spray of new developments. This sector also shifts their gear from investor to end user mode. Home value, which rejected to some level in 2015, may see extra modification as many buyers are still postponing home-buying goals. Value may steady in some other markets.
Will equity investments be restricted to Grade - A developers?
In view of the fact that the realty market is the most provisional medium for investment, the equity investors try to find builders with an excellent track record of repayments. These builders are labeled as Grade-A Developers and current year approx 90% of the equity investments are heading for to be in their support.
Will the number of successful exits change over the next 12 months?
As indicated by the exits, in the last years a big part of the exits have been by the buybacks schemes by builders or refinancing. On the other hand, 2016 is estimated to experience more winning market exits.
Apart from a few things, the realty market is intended for a positive turn in this year. So investors are about to make the smart investment at the correct time.
Will the new in FDI guidelines increase interest in smaller developments?
The Central Government step to relax FDI terms & condition comes at a time when cash-strapped developers and builders were under pressure for need of fund raising ways. This decision is about to give a boost to local projects in the big cities.
Will RERA Guidelines improve market sentiment?
More than 70 percent of investors predict rise in sales this year; recent supply of assets from China and Japan estimated to come into the real estate market as soon as possible; reactions of the investors will boost with the execution of RERA, Gurgaon, Pune and Bengaluru continue to lead as one of the investment location.
Will the first set of REIT listings hit the Indian capital markets in 2016?
Even as the respondents are awesomely positive on the bazaar’s position improving in this year, they are however watchful on the chance of REIT listings affecting the Indian capital markets and the rises of Affordable Housing as a workable investment subject.
