Real Estate Review 2014 & Outlook 2015 – Mr. Rohit Raj Modi, President, Credai NCR

Overview 2014:

Overall, 2014 was a good year for real estate sector. First, there was a stable Govt. which came to power and showed the intent for reviving Indian realty with some bold steps. Allocation of funds for low-cost housing as well as 100 Smart Cities; incentives to REITs and granting pass-through status for taxation were some of the key budget announcements that gave a fillip to the sector.

Although, these announcements improved the sentiments, it did not lead to actual on-ground conversion of sales. Delays in regulatory approvals and high construction costs continued to plague the sector.

Relaxation in FDI norms came as a breather for the sector reeling through an acute funding pressure. It was indeed a welcome step and would benefit affordable housing segment in the country. It would encourage foreign players to invest here with the removal of lock-in period.

It is evident that government intends to fulfil its dream of housing for all by 2022 and these steps are aligned to that. We are happy that government is now considering real estate as an important sector and is coming out with corrective measures. We are hopeful that soon we would be given industry status as well which will further ease out the funding issues. 

Year 2015 holds a lot of promise for the sector

Outlook for 2015:

We see this momentum going in 2015 as well. We will see increase in our economic growth, and the relaxation in FDI norms will spur demand for construction. As Govt finalises important Land Acquisition Bill and Real Estate Regulation and Development Bill in the Budget session, we see renewed confidence levels of all stakeholders in the sector. We expect more launches in Affordable housing segment because of the Govt’s focus on ‘Housing for all by 2022’. Commercial segment too would get a boost as businesses are likely to expand because of likely improvement in our economy. It would be interesting to see how Govt comes out with the guidelines on Smart Cities and REITs which are expected to give a major boost to the sector as well as overall economy. Overall, we see an exciting phase with an upward trend in actual conversions on ground.