India Real Estate Trends in 2013

The last year was not so favorable for the real estate market, as it constantly experienced high construction cost and low demand, which had brought the sales to a low position. The beginning of 2013 start has brought some respite to the buyers as well as the developers, as both are expecting some good deals this year. Unlike the last two years, the property prices will remain stable at least for three quarters of this year, thereby increasing the sales of more residential and commercial properties. The real estate reform policies and FDI investment initiative are likely to make a huge change in the market. If the property regulation policies - pending for the last couple of years - passed this year in the parliament, it will bring a major transformation in the current trends of the realty market of India. Also, the approval of FDI will lure the retail industry and accelerate the demand of commercial property.

In 2013, RBI (Reserve bank of India) is also contemplating over reducing property interest rates; it will rise in the demand of loans as well as properties. This change will increase the property sales and help the real estate developers and bring an effect on all the sectors of the realty market. Although the risk of inflation will continue to daunt the market, the policies are specially carved to bring continuous growth in the property market. The soft approach of RBI towards home loan rates is expected to improve India real estate trends in 2013. The recent policy initiative will definitely encourage buyers to invest money, which further will benefit this sector.

Most of the developers are focused on absorbing spaces where the concept of residential societies has not picked up yet like Jaipur, Jodhpur, Agra, Bathinda, etc. This will get more attention of investors and potential buyers; thus, improving the future prospect of both developers and buyers. In spite the properties have gone up and down hugely in the previous year, prices will remain constant in 2013 for a long time. However, there are few chances the value of India realty will come down. As per the experts, it seems less likely that new projects and properties in process will put any pressure on the price. The developers are keeping their best bet for B cities, where population is expected to increase in the coming 10-15 years, which will keep the demand high. Developers nowadays are trying their best to provide advanced infrastructure and green features with their developments, which may not let the price of the flats take a dip.