The introduction of legislation such as the Real Estate Bill is expected to increase transparency and boost investor confidence in the Indian market. While the government is taking steps in the right direction, more reforms are needed to boost the sector in 2013, said Brotin Banerjee, MD & CEO, Tata Housing.
‘Given that there are confusing signals from our economic data, we are hoping that there will be some policy easing, which will help our cause,’ Banerjee said.
‘The past year has seen lenders keep away from the sector, for fear of rising non performing assets. Hence, banks, too, are expected to start lending to developers again. With the passing of the new banking amendment bill, we will see new private sector banks coming in. This increased competition will mean retail (our customers) and commercial consumers (developers) are likely to gain from this development,’ he added.
With a large number of modern retailers about to enter the market, there is going to be increased demand for commercial real estate space in metros and Tier II cities.
NRI investors too, are increasingly looking at India as an investment opportunity, given the scale of growth that exists and that fact that we are gradually moving from being an emerging economy, to an already emerged one. The depreciation in our currency, compared with the greenback will continue to attract these NRI investors, whom we call the New Affluents, Banerjee opined.
The Indian middle class is set to drive demand for affordable housing in this decade. Hence, there will also be an increase in demand for sustainable and green integrated townships that will be the bridge between low-cost and hi-end homes, he said.