Indian real estate is moving towards a direction where we are having global investors amongst others seeing the long-term potential as our economy is amongst the fastest growing economies in the world. If you look at the industry reports, it comes as a surprise that in the year 2014-15, India received FDI of around USD 19 billion in addition to an increase by 20-25% in FDI raising it to USD 30 billion even though the year was slow for Real Estate. To add to this, an estimated amount of around $2.8 billion came from the private equity players. With a lot of action and regulatory changes, the industry has a mixed reaction but we feel that the year 2016-2017 will be positive for a lot of markets. Speaking specifically of the year 2016, we see the secondary market booming at a good pace. As a matter of fact, the last two years were more of a policy formation and adjustment phases starting from the supply to the demand phase.
If we look generally from an investor’s point of view, everybody will only invest in projects that make financial sense. The Indian market is a very attractive market and there is a lot of funding that can come in from different sources. The year 2015 lacked the internal confidence, which led to a sluggish business environment. For Real Estate, the realtors must focus on end users based strategies and utilize the skills and resources to make Real Estate a better experience for the customers. We look forward to a new generation of developers who will work towards improving the image and services rendered by realtors at all levels. With an emphasis on skilling people and niche; marketing techniques like digital media, social media, concept and need based selling are the trends that can make 2016-17 fruitful for investors. The current customer demand is for ready-to move in apartments and areas like NCR, Thane, Navi Mumbai, Bangalore, Hyderabad, Pune, Kochi etc are some places can be looked upon for investment. At the moment, since the prospective buyers are looking for ready to move in properties that have a quick possession, secondary market will be in focus.
Moreover, this slowdown in Real Estate is not an indication of problem, rather it’s a return of normal market rates and a more balanced and mature market. With a majority of home buyers between an age group of 28-35, the changing economic conditions of the country will surely add to consumers’ wallets and allow them to either make the purchase of their first home or upgrade to a new one. The trends like smart cities, green cities, high rise cities, affordable housing etc are attracting a lot of investors and developers to cater to the these buyers. Big players like DLF have studio apartments within 39-45 lakhs of range in early 2016 in a lot of Tier 1 and Tier 2 cities. With a lot of positive regulatory changes that have taking place and in process for 2016, Real Estate looks in a good shape and in a path from revival to recovery.