Real estate in Indian has moved from being stagnant to slipping into a downward spiral. The slump has slowed down not just construction projects but also land buys. The larger parcels of lands are still finding takers albeit at a much lower deal but the smaller plots are finding it hard to find takers. The quick money investors are not looking at real estate as a profitable game board anymore and the housing investors are playing the waiting game. Loan rates are being made more attractive to impress home buyers to make that final decision but real estate builders, investors and watchers alike are hoping for a recovery in the near future.
The one good thing that has come off this slump is a correction of prices. Earlier prices were skyrocketing and the transaction of real estate became more about black money transactions that a justifiable price of land. Today there is less of this and more buyers and sellers are opting for the legal routes and ensuring that properties are registered at the market value and not a historical figure. This has set in a new age of positivity in the market and the government is regulating this recovery which is likely to help both the commercial and housing segments. The Government has taken many steps to create an environment of growth for the sector. The policies have been two-pronged, which includes providing greater access to funding on the one hand and extending liquidity to the end-user to strengthen affordability. Both steps would lead to a balance of demand and supply in the near future.
The tax benefits for consumers and housing loan borrowers were the main demand from the industry to stimulate the sector. Increased savings coupled with increased tax benefit will go a long way in motivating home buyers who have been reeling under the pressure of high inflation and high interest rates. All these measures have led to a rise in general confidence among investors, developers and end users which is expected to alter the way 2015 is expected to be. It will create a better milieu for growth of real estate, backed by a strong economy and consumer/end-user confidence. As against the residential market, the commercial market has already positively reacted to the changes in the Indian economic condition.
Developers, in meeting the growing need for managing multiple projects across cities, are investing in centralized processes to source material and organize manpower and hiring qualified professionals in areas like project management, architecture and engineering. he modern real estate developer is keenly informed about market trends, basing his information on market research and rich experience. Young business leaders, armed with management degrees and international exposure, have also added value to this positive trend.