RERA boosts real es­tate sec­tor sen­ti­ments

De­mand in the res­i­den­tial real es­tate mar­ket to pick up

HT Estates - - HTESTATES - HT Es­tates Cor­re­spon­dent

the price of va­cant plots range be­tween ₹ 45,000 to ₹ 75,000 per sq yard. A ma­jor de­ter­min­ing fac­tor of the price is lo­ca­tion, she added. De­spite com­mand­ing pre­mium prices, Sainik Farms is woe­fully lack­ing in es­sen­tial ser­vices. Wa­ter and sewage lines have not been laid and most of the area was with­out proper wa­ter and sew­er­age sys­tem.

The Real Es­tate Reg­u­la­tion Bill be­com­ing an Act has boosted sen­ti­ments in the real es­tate mar­ket as the sec­tor is ex­pected to be­come much more trans­par­ent and organised, which in turn will ben­e­fit all stake­hold­ers, in­clud­ing home­buy­ers, says a re­port.

“Af­ter a lull of five quar­ters, the over­all sen­ti­ment has ex­pe­ri­enced a sharp uptick at the back of the Bud­get’s fo­cus on real es­tate and in­fra­struc­ture. Ad­di­tion­ally, the Real Es­tate Reg­u­la­tion Bill be­com­ing an Act has boosted sen­ti­ments fur­ther since the sec­tor is ex­pected to be­come much more trans­par­ent and organised, which in turn will ben­e­fit all the stake­hold­ers,” says Dr Sa­man­tak Das, chief econ­o­mist and na­tional di­rec­tor, Re­search, Knight FrankIn­dia.

The FICCI-Knight Frank Real Es­tate Sen­ti­ment In­dex that of­fers an over­view of In­dia’s res­i­den­tial and com­mer­cial real es­tate sec­tor for the first quar­ter of 2016, says that there is con­sid­er­able im­prove­ment in sen­ti­ments for the res­i­den­tial sec­tor.

The res­i­den­tial sec­tor, on the other hand, has re­stored pos­i­tive sen­ti­ment amongst the de­vel­op­ers and lenders for the first time af­ter four quar­ters.

The pres­sure on un­sold in­ven­tory has been re­duc­ing since the last four quar­ters due to the lim­ited num­ber of new launches. De­vel­op­ers have been fo­cus­ing on project com­ple­tions, in­still­ing con­fi­dence in buy­ers, it says.

The ben­e­fits pro­vided to home­buy­ers in Bud­get 2016 are also ex­pected to push de­mand fur­ther. Stake­hold­ers are op­ti­mistic about res­i­den­tial sales – nearly 54% of the re­spon­dents be­lieved that the de­mand will pick up in the com­ing six months, it says.

As for the com­mer­cial mar­ket, stake­hold­ers are quite op­ti­mistic about the of­fice mar­ket, es­pe­cially in terms of leas­ing vol­umes and rental ap­pre­ci­a­tion. Nearly 73% of the re­spon­dents ex­pect the leas­ing vol­ume to im­prove in the com­ing six months.

In view of the lim­ited of­fice sup­ply and leas­ing vol­umes firm­ing up, stake­hold­ers are of the opin­ion that the of­fice space rental ap­pre­ci­a­tion rate will be bet­ter in the next six months, it says.

The re­port also found that the north zone wit­nessed sub­stan­tial re­cov­ery in the fu­ture sen­ti­ment score in the first quar­ter of this year. The pos­i­tive score in­di­cated that sen­ti­ments have strength­ened and

The anal­y­sis of the stake­hold­ers stake­holder ex­pec­ta­tions from the res­i­den­tial and of­fice sec­tors for De­cem­ber 2016 ver­sus the ac­tual mar­ket sta­tis­tics gives in­ter­est­ing in­sights into the real es­tate mar­ket.

The sur­vey con­ducted for the sec­ond quar­ter last year also gave pos­i­tive re­sults for both the res­i­den­tial and com­mer­cial seg­ments for the sub­se­quent six months. While the ground re­al­ity for the six months end­ing De­cem­ber 2015 post the the sec­ond quar­ter of 2015 sur­vey was con­sis­tent with the ex­pec­ta­tions in the case of of­fice space leas­ing vol­umes and rental ap­pre­ci­a­tion, new com­ple­tions had re­duced.

In the res­i­den­tial sec­tor, stake­holder ex­pec­ta­tions were pos­i­tive for new launches; how­ever, in re­al­ity, the launches had shrunk fur­ther.

Sim­i­larly, the ex­pec­ta­tions in the case of the res­i­den­tial sales vol­ume were slightly muted: stake­hold­ers be­lieved that the sales would re­main at par with the sec­ond quar­ter in 2015 lev­els. How­ever, home sales plum­meted fur­ther. Ex­pec­ta­tions from the res­i­den­tial price ap­pre­ci­a­tion were fairly ra­tio­nalised in the sec­ond quar­ter of last year, when the sur­vey re­spon­dents in­di­cated that the rate of the res­i­den­tial price ap­pre­ci­a­tion would re­main steady, which is what hap­pened.

SANCHIT KHANNA/ HT

The ur­ban de­vel­op­ment min­istry has cir­cu­lated a pro­posal for reg­u­lar­is­ing unau­tho­rised colonies, in­clud­ing Sainik Farms.

Im­proved sen­ti­ments in the real es­tate sec­tor are likely to re­vive the mar­ket in the long run

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