Many efforts have been made, in the recent past, to boost the affordable housing segment in India. Market experts hope that this trend will continue in the present year.
India is rated as the fastest-growing economy in the world, points out Anuj Puri, chairman and country head, JLL India. “Its cities, which are the nerve centres of the country’s economic activity and cosmopolitan culture, draw the most housing demand for numerous reasons like better job opportunities, living standards and infrastructure. However, rapid urbanisation and development of these cities into mega-cities, have given rise to challenges such as pollution, traffic, high property prices, etc.,” he explains. In view of this, the government’s initiative, to provide ‘Housing for All by 2022’ gains significance. “The simple motive, is to provide affordable homes within a price of up to Rs 25 lakh. This vision must necessarily encompass the smaller cities near the major cities of India,” maintains Puri.
According to Puri, Hyderabad, Pune, Navi Mumbai, Jaipur, Surat, Ghaziabad, Nagpur, Kochi,Coimbatore and Ahmedabad, have the potential to offer great low-budget real estate investment prospects over the mid to long term.
According to a survey on investor sentiments by the Royal Institute of Chartered Surveyors (RICS) and JLL India, titled ‘Peering into 2016: Taking Pulse Of Investor Preference’, 2016 could be the year of revival for Indian realty, with 70 % of investors foreseeing an improvement in sales over the next 12 months. The respondents also felt that:
- The number of successful exits will increase in 2016.
- Pure equity will make a comeback.
- New sources of capital from Japan and China, is expected to enter the Indian real estate market in 2016.
- Mumbai and Bengaluru will continue to lead the list of preferred investment destinations.
- Investor sentiment will improve, with the implementation of the Real Estate Regulatory Authority.
Kishore Bhatija, MD – Real Estate Development, K Raheja Corp, concurs with the optimistic outlook. “Positive developments have taken place in the recent past – for example, the Housing for All scheme and the increase in foreign direct investment levels. With the Reserve Bank of India reducing repo rates, buyer sentiment has improved” he concludes.