Real Estate sector in for revival, says the Forbes India CEO Dialogues fifth session. The prices are expected to go up in the next six months.
The positive sentiments surrounding a strong and stable central government is expected to trigger a positive emotion in buyers. As real estate is a lifestyle investment, it is directly triggered by investor confidence. The last two years have seen the buyers hesitant to make important purchase decisions. Many experts still believe that the right budget is still the top priority for buyers.
At the same time, the user end of the market has been steadily growing while the speculative end has been experiencing a temporary blib. Many experts were of the view that this would correct itself in a year.
Most of the other indices too indicate a happy year ahead for property space. Positive support to homebuyers in the Budget has fuelled this optimism. The south has been showing better rates of enquiry than the rest of the country.
Developers have launched a host of new projects to match the bouyant mood. One of the major change that is happening in the sector is possession linked plans, where buyers shell out less than 30% of the price in advance, and pay the rest only on handing over the project. This has helped to restore confidence in the sector. Increasing land prices and material cost had made many projects unaffordable.
Commercial real estate too is on an upswing in many markets. Rentals have retained their value across board.