Realty Sector Next Financial Year
Both players and professionals in the real estate market are unanimous in their view that things will start looking up for the realty sector in the next financial year when clarity on the new government will emerge and investors start investing. The year 2013 was a drag for the Indian economy, with poor macroeconomic conditions, slowing income growth, sustained weakness in the rupee, sky-rocketing inflation and high borrowing rates combined to make consumers vary of spending, chairman and country head of realty consultant Jones Lang LaSalle India (JLL), Anuj Puri said, adding that weighted average prices of homes across the country rose by 10% year-on- year basis during the first three quarters of 2013. But growth remained skewed towards suburban and emerging locations, as opposed to city sub-markets and that rental values rose eight% during the same period.

They observed that after the elections, fence-sitting investors are likely to become active. The increase in absorption of residential units will help reduce the currently large inventory holdings of developers alongside residential prices are expected to raise 10-12% during 2014. In fact, the residential realty will experience traction in terms of sales volume and launches at the start of the second half of 2014 and there would be an upward pressure on prices. The office segment is driven more by economic rationale and as a result, the uptick is likely to take place with a quarter lag, they added.