Track2Realty: Provide on-ground impetus for affordable housing In the previous nine-month Budget, the new government outlined its vision for boosting affordable housing. From the upcoming 12-month budget, the Indian real estate sector looks forward to provisions that firm this vision up on the ground.
Track2Realty: Residential sales declined by approximately 30% y-o-y by the end of 2014 in the seven leading cities of the country, largely due to high price points, sticky interest rates and cautious buyer sentiments. The decline, which was noted across all major cities, was particularly steep in the DelhiNCR (National Capital Region).The slowdown was reported in the premium/luxury as well as the high-end/mid-end housing segments.
Track2Realty: Almost 25% of the total warehousing/logistics space uptake across the country in 2014 was by e-retail players, while the uptake of logistics space rose by more than seven times over that of 2013. India’s online retail sector saw exponential growth, as a number of local market-specific services—such as cash on delivery (COD), multiple payment options, and EMI options—assisted in developing the growth curve of e-commerce in the country—according to the findings of CBRE’s latest special report, India Online Retail Driving Realty.
Track2Realty: Real estate stakeholders in every Indian city are looking forward to the upcoming financial budget 2015 to see whether it will provide any relief to the sector. Developers have their own expectations, because positive announcements for real estate buyers made during the budget will help increase the market sentiment, and therefore sales. The general hope is that the budget will provide cheer to intending home buyers who have been deterred for various reasons.
Track2Realty: As we move closer to the Union Budget 2015–16, India’s real estate sector is hoping for certain key expectations to get implemented. Following the Government’s announcements of building SMART Cities in the Budget last year, the industry seeks more clarity on the exact definition of one in the Indian context, fund allocations for, and city/Greenfield location identification of such development. The implementation of such ambitions would ultimately result in national wealth creation—to help our cities become sustainable and livable urban centers of growth.
Track2Realty: Even in these times of gradual revival, many developers continue to battle the problems of curtailed liquidity. Many developers with large land holdings are not able to launch projects on these land parcels solely with their own capital, and therefore look to either partner with better-capitalized developers or those looking for development opportunities in an asset-light model by giving them development rights in such projects.
Track2Realty: In a market still defined by significant lack of transparency, real estate consultancies play a complex and responsibility-driven role in all real estate transactions, especially in the case of high-value property assets. In large ticket sized transactions such as those involved in Grade A office spaces, there can be no margin for error. Transparency, ethics and accurate market information play an inalienable role in closing such deals.
Track2Realty: The Indian real estate market is showing signs of confidence and improved industry momentum post the general elections 2014. The last two quarters clocked an uptick in commercial space take up across leading cities in India. Noticeably, Delhi NCR stood as one of the leading occupiers, registering a significant increase of 25% (y-o-y) in take-up figures during 2014. Moving forth, the demand and corresponding vacancy levels would be key determinants for future traction in the commercial segment across this region.
Track2Realty Exclusive: It has indeed been a busy year and 2014 can well be described as the year of roller coaster emotions where the business confidence index was exposed to two extreme ends of swing. In an otherwise flat year, the real estate sector may not have been witness to transactions on ground but the poetic engagement has definitely been at the emotional level.
Track2Realty Exclusive: 2014 was an eventful year for the commercial real estate market in India. The economic outlook in the first half of the year was uninspiring. Coupled with political uncertainty this resulted in investors and occupiers stalled making any real estate decisions. Business confidence was at its lowest. The sentiment changed dramatically in the second half post the national elections as it became clear that there would a ‘new’ stable government.