As per the National Housing bank (NHB) Residex Index; the real estate demand in India during 2014 remained most restrained ever since, the property prices show an upward trend in the second half of 2014 where the first half witnessed a downward trend in property prices due to high prices, high interest rates and depletion in rupee value. Real estate analysts say that; 2015 will be the year of recovery for the Indian real estate market. The survey says that every area requests a change and 2014 saw the new government formation. Many areas such as stock market, real estate, gold prices and fuel were propped up by positive sentiments. These changes lined way for Indian Real Estate Change 2015 which is expected to be the year of recovery.
Real estate Developers and property consultants says that to clear the existing stocks of real estate inventory at predominant rate the quantity of months is needed. It will definitely improve the economic growth as it brings down the property rates. If the RBI cuts the interest rates before that, there would be a prompt improvement in residential transactions and will see good spending in the residential property segment.
Ambar Maheshwari, Alternative Investment Funds, CEO, India bulls Group says that; “the new government is batting for interest rate cuts where the Reserve Bank of India holding interest rates by stepping back from its inflation. The residential sales in Indian Real estate market are likely to recover and the demand will be back by June to July of current year. Any improvement in the real estate demand will turn positive due to the consumers’ expectation and income prospects, sentiments are improving largely. To translate this into realty the individuals ought to spend the amount from their hands”.
The real estate survey says that “a stable government brings hope for real estate development in India”. The propitious plan of PM Modi to enhance the infrastructure developments and to provide housing for all by 2022 will bring certainty among buyers and it will also improves the residential sales, because before finalizing the property many property buyers in India will take many points in to consideration such as roads, public transport, security and capital appreciation.
According to the commercial market expert; due to the increased activities & recovery in 2014, it will witness a further momentum in 2015. In addition, the ministry of statistics program and accomplishment and PWC Analysis expect a growth of 8 to 9 percent. The introduction of REITS, improved positive sentiments, commercial development and government initiatives to diminish bottlenecks and loopholes of projects will drive the absorption levels and clear the way for positive trends in 2015. Real Estate Investment Trusts and commercial real estate will have a huge impact in 2015. It is a proven strategy in the USA and it mainly targets small investors and promotes investment channels.