Industry speak: Real estate outlook for 2017
Accommodation Times News Service
Navin Makhija, Managing Director, The Wadhwa Group: In 2017, the expectation of the buyers and developers ought to rise as the sector has witnessed lots of new government policies. These policies will help the industry to be more organized and will provide a boost to both the residential as well as commercial real estate segments. Demonetization has sentimental impact, with money coming in the banking system home loans to mid income will be easily accessible and at cheaper rate. Developers should focus to complete the existing project, sales will happen as the buyer gets to see development and project reach close to completion stage. The RERA act will strengthen the association between a buyer and a developer immensely. The act will consist of a registration mandate, and strong penalties will ensure that the home buyers feel secure about their investments and further enhance the residential sales. It will play a significant role of a supervising authority for any land or home deal that takes place. The above policies initiated by the Government will help propel the growth of the organized real estate sector going forward.
Mr. Rahul Shah, CEO, Sumer Group: “India is one of the quickest growing economies currently, which is attracting both domestic as well as international investors. The year 2017 can prove to be a profitable year for both the developers as well as the consumers, with the introduction of RERA, which will result in greater transparency in transactions. The luxury housing segment could possibly show a small turn due to the changes brought about in the economy in 2016; however, it is said to be the fastest growing segment. People are getting attracted towards luxurious living and hence this segment will show great growth. We are looking forward to the year 2017.”
Mr. Mayur Shah, Managing Director, Marathon Group: Going by market research and expert analysis, 2017 will have the Indian real estate sector witness a pragmatic change and buyer enthusiasm. While 2016 remained low key, the coming year will be promising for buyers and developers alike, overthrowing the long-established downswing period. With demonetization, the liquidity in banks has gone up and hence interest rates are expected to reduce in the days to come. This will encourage home buyers to come ahead and invest in property. Also, the ‘Housing for All’ scheme introduced by the government will further promote affordable housing and subsidy for construction of house is gradually painting a brighter picture for the real estate segment in 2017.
Mr. Mudhit Gupta, CMD, EMGEE Group: In 2017, the Real estate market will go through a phase of consolidation. New reforms like RERA and demonetisation will segregate the men from the boys. The overall industry will see a lot more confidence from the buyers/investors, greater transparency, positive outlook by foreign investors and cashless transactions. Affordable housing segment will be the best segment in the real estate sector especially with a mandate from the PM and government with housing for all 2022.
Ms. Manju Yagnik, Vice Chairperson, Nahar Group: India is on a brink of a new era, with foreign investment rules, RERA and the emerging smart cities is all summing up to an aspiring 2017 for the realty sector. With such initiatives taken by the government, we perceive a more level playing field for well-known and reputed realty brands. This will improve market sentiments and increase home buyer confidence within the industry. It will also make it more attractive as an industry to invest in, given higher transparency levels and ethical business practiced by various stakeholders. We also foresee more investments by FIIs and foreign investors as well as NRIs who will be happy to invest in properties back home.We look forward to seeing more government participation in incentivizing commercial property development. The government should look at offering incentives for developers to construct more commercial spaces as it will help in attracting foreign investments and amplify India as a business power house. Growth of commercial property directly results in demand for residential, retail and hospitality sectors. This bodes well for the entire property market.