Sunday 24 January 2016

Experts Says: Real Estate Market to witness decent growth in 2016

According to JLL India and Royal Institute of Chartered Surveyors (RICS), Indian real estate market anticipates growth comeback in the year 2016 because of the expected surge in sales volume of inventory in the next 12 months. More than 70% investors optimistically assume real estate market to have the steady revival in this year, based on the report – Peering Into 2016: Taking Pulse of Investor Preference.

The report concludes investors’ growing interest for Indian real estate market, say nearly 43% people in their feedbacks anticipated growth comeback for realty this year. The report further reveals Mumbai and Bengaluru as top destinations preferred by investors. Commercial office assets and residential properties in mild-segments will draw attention from investors, claimed the report.

“After relatively muted calendar years 2013 and 2014, private equity (PE) investors significantly increased their bets on the Indian real estate sector in 2015. This report examines the motivations and expectations of PE funds that are now actively ramping up their exposure to this sector,” a representative of JLL India said.

The report attributes buyback or refinancing as the potential factor behind numerous exits that happened during the last 12-18 months. A large number of investors who have participated in the survey have confirmed continuance of refinancing theme exceeding 12 months or one year.



Meanwhile, relaxed norms on FDI and passage of real estate regulatory bill will act as catalysts to steer growth for realty, as smaller projects will pick up investment inflows, thereby empowering market’s sentiments at substantial scale. The report also lent expectation of overseas investment, especially from China and Japan, driving into Indian real estate market this year to understandably boost up growth of realty to a greater extent.

The report was executed by seasoned investment professionals, thus lending more gravity on its credibility.

Article Source: Live Mint. January 22, 2016

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