By Accommodation Times News Service
The real estate sector has been facing strong headwinds over the past couple of years on numerous counts. Customers are adopting a wait and watch approach hoping for prices to come down. While prices have corrected somewhat in most markets across the country, the combined effect of cost increase and reduced prices along with the increased finance cost on account of the slow sales has left developers with no head room to lower prices any further.
Looking forward to 2016 we hope that home buyers will realize the benefits of investing their money currently being paid towards rent for their equity in their home instead. There is talk of improving the approval processes across the country at all government levels. This will lead to an improvement in the overall supply there by keeping prices in check such that we do not anticipate any run away price increases as we have seen in the past. The real estate regulatory act will certainly lead to a fair amount of confusion and uncertainty as it is expected that initially there will not be clarity on how current projects where sales are already taken place will be treated. On an overall basis we expect the market to be mildly positive to flat but do not see much room for further price correction barring some pockets of some individually stressed developers.