Experiences and Hopes of Real Estate Sector
In an overview on Indian real estate sector in 2016 and perspective outlook towards 2017, Mr. Rajiv Gupta, CEO, Wave Infratech, shared his views with SMEStreet.
An Overview of 2016
Macroeconomic uncertainties and stickiness on the interest rate front slowed housing demand considerably in 2016. Off takes were far and few, across companies and verticals. Despite RBI’s repeated interest rate cuts in the last two years, banks have failed to pass on the benefit as a result of which homebuyers stayed away from the market. There was some spike in sales in the festive month of October, also on account of pay-out of seventh pay commission, but demonetization in the next month took the sheen off it, resulting in awkwardly slow sales in the last two months. As for Wave Infratech, the company’s flagship project Wave City on NH24 embarked on the possession mission. The focus to enhance liveability in the township took precedence and several infrastructure works, utility and security features have been made operational.
Outlook 2017: Hopes for the Real Eastate
2017 is going to be a very crucial year for the real estate sector as several policy decisions taken in the last few years will play out. Initial hiccups are expected, possibly till the first quarter of calendar year 2017, but we believe with demonetization, banks will be encouraged to reduce lending rates. Complimented with stagnancy in home prices, a demand led recovery is in sight. We believe the budget will dole out tax benefits to the people that will positively affect demand. The Real Estate Regulation Bill, too, will bring in transparency in the sector and help streamline the sector and bring back consumer confidence. The recently announced Project Settlement Policy by the Uttar Pradesh Government will immensely help drive demand and ensure faster completion and execution of project in the State. 2017 will be a good year for those waiting to buy a home.