DELHI: The Indian Real Estate market has continued to record impressive growth in the last couple of years. With several projects being launched on an almost daily basis, 2013-14 is expected to witness substantial supply of housing across the country. Hence, the overall housing shortage in India is likely to decline to around 75.5 million units in the period 2013-14.
“We expect housing shortage to decrease primarily due to the government’s thrust on improving rural housing by providing houses to the homeless under various development schemes and by enabling slum redevelopment programmes in urban areas under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM),” stated a CRISIL source.
However, housing shortage in urban areas is expected to continue to rise owing to migration towards urban areas and the increasing trend of nuclear families.
The game changer in terms of policies and regulations is also expected to give further impetus to this segment, as most of the bills that have been pending for the last few years are expected to be passed in Parliament in the coming quarters of 2013.
This is especially true with regards to the passage of two important bills: the Real Estate Regulation Bill and the Land Acquisition Bill, which are both expected to boost the sentiment of all the stakeholders.
With the lowering of interest rates developers as well as consumers both are expected to benefit further.
“The silver lining for all those who missed the boat, both developers and consumers, is that 2013 is a year to start a fresh innings. In a country that has an acute housing shortage there will always be takers provided the offerings are enticing,” predicts Rohan D’Silva, the national director of Knight Frank India.
With all these measures, going forward, industry observers expect a strong underlying demand to continue to aid an improvement in absorption levels in major cities.
Industry analysts however have a word of caution for the stakeholders. “Despite strong fundamentals backing the Indian residential real estate sector, we need to understand that the segment is also influenced by global economic cycles. Hence, a cautionary approach when it comes to investment in this sector would be necessary,’’ states Ranjitha Wadhwa, Property Consultant and Investment Adviser, Shingroor Real Estate Consultants, India.