How the Indian Realty Market Will Likely Fair in 2015?

Apr 21, 2015 by

As per the Residex Index of the National Housing Bank, the prices of residential properties shot upward in the second half of 2014. In the first half of the year 2014, people saw the weak rupee, the property prices dip, and they also saw high inflation having a negative impact on spending patterns. Needless to say, the year 2015 will be all about recovery.

In order to understand how the Indian realty market will likely fair in the year 2015, you would need to understand the current trends in the realty market. Here are some of them.

REITs have become real

The government of India has decided to notify the regulations for the real estate investment trusts or the REITs. Not only do these trusts provide money to developers, but they also enable simpler exits. The income that is earned by investing in these units is distributed among the holders of the units. Not only will these units ensure regular income to the holders of the units, but they will also protect their rights.

Relaxation of the FDI rule

The minimum floor area required for Foreign Direct Investments in residential projects has been reduced by the government of India. The minimum capital required has also been reduced from $10 million to $5 million. This has resulted in more projects becoming eligible for Foreign Direct Investment. The three year lock in period has also been done away with for Foreign Direct Investment. This has also given a boost to affordable housing in India. High prices of housing used to make it very difficult for people to buy houses. Now, that is not the case. The housing and real estate sector is, therefore, beginning to look up and the current situation of the Indian real estate industry will hopefully have improved by the end of 2015.

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