BANGALORE: The year-end is around
the corner. It has been a year of high inflation that led to a tight monetary
policy . Despite the demand for some easing in the monetary policy, the Reserve
Bank of India (RBI) could not bring down the key policy rates, given the upward
pressures on inflation .
The indications of the inflation
rate cooling down towards the end of the year and the moderating growth rate,
however , resulted in the central bank infusing more liquidity into the banking
system with a cut in the cash reserve ratio ( CRR).
While this move cheered the
markets and home loan interest rates witnessed the
beginning of a downward trend, the more heartening news of deeper cuts in the
rates can be expected in the course of 2013.
Analysts are predicting a
downward momentum in home loan interest rates as there are
concerns of the slowing growth rate before the RBI too that could lead to
policy rate cuts.
Interest rates apart, the opening
up of the foreign direct investment (FDI) option in the multi-brand retail
sector too is something to cheer about in 2013 for the property sector. This
move will mean more demand for commercial retail spaces across the city.
Largeformat spaces in the outskirts too will be developed to cater to the major
retail outlets expected with the FDI route opening up.
The year 2013 will also be
eventful for the property market here with civic
infrastructure projects gaining ground. The seamless Outer Ring Road (ORR) and
Metro connectivity projects will get a boost with works progressing towards
completion pushing both rental and capital values in the vicinity.
Given the persisting uncertainty
in the Euro zone and Western markets, there are chances of more investments in
property coming here. The high returns on investments here in terms of both
capital gains and rentals will draw more investments, especially with the
better property management services
available now. Many pre-launch offers will find favour with investors looking
at the medium term. Property here is a safe and lucrative investment avenue.
The coming year holds promise of better times for the property sector.
