2012 was a nightmare for the real estate market in India. With property price dipping, the investors were not keen, but even that did not show any signs of purchase by the buyers. This scenario is likely to change in 2013. There are several reasons for that. One of the main reasons is that the home loan will become cheaper with banks reducing the rates. The other reason is that the investors are trickling in and taking up shelved projects again. Given below are five things in store for the Indian real estate market this year-
Favourable Policies For The Real Estate Market
In 2012 the government finally took a step to draw some policies in favour of the real estate market. They have promised to give it a status of an industry as well. In 2013 you will be able to see a large number of bills being introduced, like the real estate investment trusts (REITs), Land Acquisition Bill and the real estate regulatory bill. These bills will help shape up this sector in a favorable way.
Increase In The Demand For Office Space
In 2013 you will see an increase demand for office space. The demand for such spaces will be in the prime locations, like downtown and the centre of the city. The price of these office spaces will be quite high. There will be a greater demand for rental office space, as the prices are high and there are limited projects like this.
Residential Market Will Become Expensive
This year, experts are saying will likely see the rate of absorption going up drastically. The Real Estate Investment Trusts will allow rental investment. You should know that this is likely to increase the demand for investment in property in important cities. Investment in the home real estate will be more expensive than the last year because the prices of construction materials and gone up and so has the inflation. This will make per square feet more expensive.
Demand For Both Investment And Buying
The reduced SBI home loans have ensured that buyers are ready to invest in new homes; this has made the investors rise up and take action. They are coming up with numerous new projects and with the help of the government’s help are starting on projects that have previously been shelved because of lack of funding or interested buyers.
Prime Cities Will Notice A Scurry For Real Estate Investment
In cities like Delhi, Mumbai and Bangalore, buyers are rushing to buy property while the price is still low. In Delhi, the per square feet amount has grown up drastically since last year and therefore buyers are keen on purchasing before property prices rise any further. It is similar in the case of Mumbai, Bangalore and Chennai.
These are the five things that are in store for 2013. The real estate market is finally turning around and this is proof enough.