2014 ended on a good note for the Indian Real estate industry. Among significant developments, were the announcements of ‘Housing for all by 2022’, relaxing FDI norms in the construction sector, providing easier and cheaper loans by granting low-cost housing infrastructure status and allowing Real Estate Investment Trusts (REITs) for commercial real estate. Now,2015 is expected to be more action-oriented.
The New Year is likely to bring cheer for the real estate sector. While many are pinning their hopes on a recovery in Residential properties, Commercial real estate too is likely to get a boost.
Factors on the demand side are highly positive. The spurt in urbanisation has been driving the demand for housing in many cities. 2014 also marked as a year of innovation and accomplishment for the real-estate sector. The attractive schemes that were doled out by developers in under-construction projects during the festive season of 2014 are likely to continue in 2015.
‘Affordable housing’ was the talk of the town. It has made a great comeback in modern India.
In India, the term applies to housing created for the EWS (Economically Weaker Sections) of the society so that they, like the middle class can also benefit from the financial and emotional security of home ownership. With the Central Government and the Central Bank clearly speaking about their intentions for pushing affordable housing; Developers have now made a point to address the increasing demands for affordable housing.
The challenging part of this format for the developers would be to align it with their existing projects without impacting their brand image.
As a direct effect of this dynamic, affordable housing is now also the most preferred asset class for property investors. There has been a huge supply in mid-income and high-end properties in all cities of India, but a marked lack of willingness among buyers to pay for high residential spaces.
This concept of ‘Affordable housing’ aligns very well with us. We, at Kasturi Residencybelieve in ‘Simple and Affordable living for all’. Hence, one can find wide ranges of flats according to their needs at the most budgeted rates.
The government’s emphasis on affordable housing in the country will likely to lead a high growth and also enable people to invest more in housing. With continuously rising population, growing aspirations, increasing nuclear families and rapid urbanisation, the housing sector in India is anticipated to register a strong growth in the near future. There is also a high anticipation of positive developments in 2015 ensuring an efficient way of getting approvals in a timely manner.