Real Estate Market in 2015 and What To expect in 2016
The real estate sector is one of the most globally recognized sectors. In India, real estate is the second largest employer after agriculture and is slated to grow at 30 per cent over the next decade.
Talking about Real estate market in India, as it is indeed a high return on investment market but late after 2012, investor loosing big amount in Housing and commercial scheme due to low demand in market. People Started to opted out from real estate market and industry to invest in other industry.
A 2015 year come up with new hope and changes in some policies get back faith in real estate market in India. From the second quarter of 2015 reports suggest that real estate market show good days in several state like Maharashtra, Pune, Bangalore, Gujarat, Calcutta, Chennai etc. Demand of property was much better in market than earlier years. Surprisingly demand of commercial property are more than residential in 2015. For the first time in three years, the demand for homes exceeds the supply, theoretically signaling a price rise in the coming quarters. However, this seems to be more of a corrective phase, heading towards a stable market.
Mumbai is the best city in India for commercial real estate investment, with returns of 12-19 per cent likely in the next five years, followed by Bengaluru and Delhi-National Capital Region (NCR). Also, Delhi-NCR was the biggest office market in India with 110 million sq.ft, out of which 88 million sq.ft were occupied. Sectors such as IT and ITeS, retail, consulting and e-commerce have registered high demand for office space in recent times.
India's office space absorption stood at 35 million sq.ft during 2015, which is the second highest figure in the India's history after 2011, and was driven by corporates implementing their growth plans. 2015 Year seems to be stable year and expert didn't saw much growth, because of three mainly reason. the high prices, higher interest rates and cautious buyer sentiments.
Now what to expect in 2016-17???
Central Govt. has came up with several projects and policies that can boom and create excitement in real estate market. A smart city concept with House for all by 2020. these are the major initiative that taken up bye the central govt. If policies are working good than real estate market will surely grows in current financial year.
With huge inventory lying unsold across the country, the road to recovery looks long and winding for the real estate sector. According to experts, it will take another five years to sell the units, but lack of buyers' interest will make it more and more difficult for developers to complete existing projects. Even the festive season and the recent round of rate cuts by the Reserve Bank of India (RBI) have failed to bring cheers to the real estate market.
Not to forget about The Real Estate Regulation and Development Act 2016, passed by Rajyasabha in May 2016. This act will benefit the buyer and seller of property. A law that favors more to consumer than Developers. An on time possession of property is must for developers now which will help consumers. A law will give transparency, regulation and proper process.
2016 show highest cut in repo rate from RBI and people expect more as data suggest positive growth on 6th of oct, 2016 RBI have cut another 0.25 bps on Repo rate, but banks are very slow to pass interest rate to its customer. if they do it more precisely then demand for home and office will surely increase.
For end-users, however, it is certainly the right time. But, before you take the plunge, don't forget to bargain for your dream property.