Another year passed and unlike the previous years, 2013 brought both boom and doom to the real estate market. The protagonists of this sector heads into the new year with loads of optimism.
Real estate market witnessed tremendous ups and downs in 2013, which certainly imbalanced the projected growth of many developers and even hampered the capital of investors. Hopefully, year 2014 would bring enough saturation and maturity to the market to provide greener pastures to both the developing and investing parties. As an after effect to the last year’s constant market instability, the growth rate in the first half of 2014 may not be rapid as it was during 2006 and 2008, when real estate sector exploded with excess demand. The Real estate heavily depends on the market demand and economic fundamentals, when the latter two are in good condition then real estate naturally upsurge and vice versa.
AVJ Group Chairman & Managing Director(CMD), Mr. Vinay Jain holds strong and positive views about the real estate projections in the commencing year as he believes that market sentiments completely influence the real estate sector. Government authorities initiated with some favorable decisions and came up with Regulatory Bill and REITs, providing a virtual boost to the concerned sentiments. Even this dynamic industry launched several projects in the last six months; this has certainly revived the real estate market. Probably, 2014 may not prove that dynamic initially but the elevated optimism is certain to boost the market in the later half.
He further sees that the demand of residential property has increased in the recent past and there are numerous reasons which have contributed to this demand in residential property. Moreover, he feels that many of the responsible factors are likely to continue in the foreseeable future which will definitely sustain or increase this demand. RBI has forecasted that by the end of 2014, inflation is expected to come down to 5.3% while the economy of India will rise by 5% at the end of 2013-14.