Residential Market On The Recovery Road
23 Oct 2015
It's common knowledge that the real estate sector is recovering from the long slack period it had been facing since 2010. There have been many events that have had a positive impact on the market and helped pull itself out of the period of inaction. If we have to assess the situation in the general terms, the ailing sector got back on the recovery path in mid-2014. The changing political and economical scenario gave the realty industry the much-needed boost. The festive season (August to December) of 2014 was one the finest seasons in last several years. The change of governments simply means the change in policies and its impact can go either way. The real estate market varies from city to city, but the impact of the policies is visible all across though the implications may be different everywhere. Thankfully, the budget and the cut down in the interest rates and the revision of repo rates by the Reserve Bank of India has come at the right time and has given a hard push to the trudging pace of the real estate. The Foreign Direct Investment (FDI) in the construction sector also doubled in January 2015. As a result, the sector has shown the symptoms of getting back in the pink of health. Now we are already into the festive period this year, and the industry players are beaming at the prospects ahead of them.
Due to all the things mentioned above it's only natural to anticipate good business in the residential market across India this year. The residential market, in particular, will improve considerably as the middle-class and upper middle-class target buyer have plenty of means at their disposal to consider the options of buying a house property. Last year, despite the high-interest rates, the business was booming. Now, with the slashed rates it's only natural to expect a steady rise in the business. The residential property developers have also geared up to tap the swelling enthusiasm of the buyer. Offers, tax exemptions, gifts are the usual tools in the armoury of the developers which also has an effect of inducing the buyer to some extent.
So now the question that needs to be addressed is – is this a momentary respite or the state of affairs will sustain for a longer period? Well, there can't be a satisfactory answer to that question. The real estate is a highly volatile sector, and one can never determine how it will react to the certain events of the future. But, if one has to infer from the past data and to take into account the current state of business, it will be safe to say that market will see a steady rise till mid-2016. And if all goes well, it might go further high. But as the old saying goes – make hay while the sun shines. The sun is shining rather brightly at this point, and it will be advisable to the residential buyers that instead of waiting for the better deal, plunge in right away, to reap the maximum benefits. For in real estate, there is no time like the present.