REALTY : What 2015 presented to Real Estate

Real Estate has always been deemed as a spectacular contributor to the countryís economy. Even without an industry status, a lot is expected out of this sector. With the year coming to an end, we stress on the points those presented itself in front of this sector in good spirits. The market sentiments were already riding high with the new government pitching in strong promises but everyone waited in anticipation as to what all was to be delivered.

Multiple Rate Cuts: The Apex bank induced a series of REPO rate cuts in the calendar year to such extents that finally the financial institutions were forced to cut down on their lending rates. This was possible only on the stabilizing financials and was to lead to much improved buyer sentiments leading into the festive season towards the end of the year.

HFA pitches SMART with AMRUT: The governmentís push of Housing for All picked up all new pace with 98cities being shortlisted for the Smart City mission and another 500 being picked up under AMRUT to fulfil this promise. This will induce investments to the tune of almost Rs. 48,000 crores in the years to come.

The Infra Push: This government surely did recognise that all development is useless unless there is no proper infrastructure in place. Heavy funds have already been allocated towards the same, the biggest instance being over Rs. 32,000 crore already being spent on the betterment of the existing road networks in the country.

FDI turns Economy Topsy: Many a steps were taken towards improving the FDI inflow towards this sector like relaxing the capping limits on the area under development, phases of construction to be considered separate projects, relaxation in the lock in period, etc. generated a big boost to for the real estate sector. All these helped see the FDI in the sector rise by an affluent 30%, the highest ever in a single calendar year.

The results would have been much better had the outcomes of various other processes been in the favour of this sector but thatís how economies grow. Take in whatever you can every year and plan the next year with the policies and expectations in the pipeline so that the expectations and realities stay close to each other.