points in two rounds previous year. · the property in india has witnessed large unsold...
TRANSCRIPT
RBI has cut interest rates by 50 basis points in two rounds previous year.
The positive effect of this will be seen this year as buyers who are waiting for much deeper cuts will stop doing so and
seal the deal
Developers are changing track to attract buyers into the residential markets. Builders with large debts and piling
inventories are expected to ease the process of property investment with easy payment
plans for homes
The property in India has witnessed large unsold inventories, a majority of which is in
Tier I cities including Mumbai, Delhi, Hyderabad, Ahmedabad and Bangalore.
This has prompted most of the developers, both big and small, to head to other
upcoming tier II cities like Pune and Chennai.
The plan for 100 smart cities across India and other such projects similar to the GIFT city in Gujarat have already garnered huge interest
in the NRI and other communities. The government has also made it easier for FDI to
flow in to Smart City projects. Such flow of fund, it is expected to boost investment in the affordable segment, which will lead to growth
in the real estate sector
The change has already happened. A large number of developers are re-drawing their plans and are converting 2BHK apartments into 1BHK apartments in India with fewer and simpler amenities. This will end the
exclusive growth of luxury condominiums in all the new locations
The commercial office sector, which was a saving grace during the slowdown, is
expected to further shine in 2016. Buyouts of ready commercial space is on, and private
equity funds are now even looking at investing in under-construction properties
Several private equity (PE) funds are either planning or are already on their way to raise almost $4 billion from overseas
investors to invest in real estate in 2016
The real estate sector that suffered much pain in the past two years is moving towards a more rational regime where developers,
having learnt from their mistakes, now focus on project execution and delivery. 2016 is expected to gradually move towards better home sales and see a spurt in launches in
some locations
After more than three years of PE funds doing primarily debt and debt-structured transactions in real estate, a few of them are again ready
to infuse equity capital into projects to get better returns through long-term commitments
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