It is easy to criticize the Indian real estate sector for its narrative, or the lack of it. But it takes some thorough understanding of the business, its ROI cycle, its historical legacies and multiple other factors to find method into the madness. We explore how the real estate can create its own effective narrative like some of the other matured industries.
The Nifty Realty Index that touched a low of 162.13 on 19th May in the post Covid mayhem has now scaled up to 280.00 (First week of December). The BSE and Nifty also surged more than 50% since the March lows, thus making the Indian stock market one of the best performers across the world. India’s only REIT, Embassy Office Park that scaled down at INR 319 is back in the range of 350 with a forecast of crossing 400. The second REIT, Mindspace Business Pak that was over-subscribed 12.96 times in the month of August this year, is also on its growth curve.
RERA was supposed to save the day for homebuyers, but that doesn’t seem to have happened – at least not yet. In many states RERA, in its present form, is currently either non-existent or a pale shade of what it was intended to be.
The Indian real estate market has always been notorious for its lack of transparency, and the changes in recent times has been less than desirable. As India aspires to get clean money into the sector, the foreign funds too have high standards in terms of service quality and clarity.
Pune property market is meeting the two challenges with the use of local talent. Interestingly, there is no dearth of man power in this market, either skilled or unskilled and the reason is pretty simple; instead of looking to tap the work force from other regions developers in the city are banking on the local talent to meet the project requirements.
Majority of property investors in Dubai real estate market seek the option of villas in the heart of the city with open and green spaces. At Sobha Hartland an investor will have the exclusive opportunity to not only own a luxurious villa in a prime location on the Dubai canal but also one which is surrounded by 2.4 mn sq.ft of real trees/greenery/grass & flowers.
Most of the homebuyers as well as the other stakeholders of India’s housing market share the sentiments of this homebuyers. The Reserve Bank of India has indeed surprised many while keeping the repo rate unchanged at 6.25 per cent at the beginning of the new fiscal year. Even a symbolic rate cut would have helped the market change its outlook towards the economy.
Realty ratings have not grown in India and the issue of objectivity also makes it prone to criticism. However, there is no second opinion that if a standardised mechanism of real estate rating is evolved, it can differentiate between the men and the boys in the business.
News Point: At a time when the need-based housing is…
News point: There are many reasons of project delays and…