A new year is here and so are the hopes of revival for the residential real estate market in India. Having gone through a not-so-great cycle in 2015, the industry is looking forward to an upswing in fortunes.
Here are some developments that you can look forward to in the real estate industry this year.
- Low interest rates, higher enthusiasm:
When RBI lowered the interest rates on home loans last year, it was expected to activate prospective buyers who were unsure. The effect is expected to increase in 2016 with the wave of interest in taking home loans and purchasing homes increasing. - Focus on project completion:
In 2015, developers faced burgeoning numbers of unsold units because of the widening gap between consumer demand and project launches. Towards the end of the year, the number of project launches declined in response to the market condition. In 2016, developers will be shifting their attention to project completion so that they can appeal to the increasing number of people who prefer ready-to-move-in homes rather than under construction units. - Shift of attention:
As selling projects in Tier I cities gets more complicated and competitive, developers are beginning to focus on Tier II and III cities to launch new projects. This year will see progress in that direction and increased launches in Tier II and Tier III cities. - Affordable housing to stay strong:
2015 was a revelation in the changing preferences of the market. Individuals and families are showing increased interest in rented housing as well as affordable housing options. There is a marked improvement in preference for smaller, budget-friendly homes in the city rather than large homes on the periphery. This is also a reflection of the change in family structures. - Irresistible offers:
Just stalling new project launches alone won’t help developers sell existing inventory. So they have begun to go the extra mile with appealing offers and discounts to convert prospects to buyers. Developers are working hard to understand the pulse of the buyers and increase the value they offer. - Increased FDI in realty:
With relaxation of regulations, we can expect to see a rise in FDI in the real estate sector. It is an encouraging time for foreign investors to bring ideas to life with strong partnerships in the country.
2016 promises to be a year of growth for real estate. Builders will have to seek novel means of selling their existing projects and also really tap into the needs of the dynamic market. Clearly, the old ways will have to be put to rest.