According to the experts report, in last three quarters of 2012, the Indian GDP was revised downward and in 2013 it will be lower. The economy of India will certain improve in 2013, with a homologous gain in real estate momentum. The Indian real estate market will recover in 2013 as the policy and regulatory environment is excepted to have positive impact on the real estate sector.
The passage of land acquisition bill and property regulation act will help to improve the real estate market. The foreign investment in multi-brand retails will increase the demand of commercial property in India.
Due to the fall in demand and sales, and rising construction coast,the year 2012 disappointing the real estate developers, builders and investors. The revenue of the many real estate companies decreases up to 3.8% in the second quarter from year 2011.
Residential real estate in 2013
The prices of residential property in tier I cities like mumbai, delhi had crossed the affordability limit of buyers . This factor will help the tier II to cities, the demand of property in tier II cities like Jaipur, Bhopal, Kanpur, Pune, etc., was increased in 2012 and it will gain more acceleration in 2013.
Since builders have to obtain 57 permissons to start construction of a project and mostly, this process takes two year. During this time, the acquisition cost and construction cost of a project rises. Builders are already beset with the increased cost. Therfore, the lowering the sales prices in 2013 will increase the sales residential real estate.
According to the report, the projects that providing different products at better cost will accepted buy consumers in 2013. The builders, those are launching mass housing project with Rs. 4000 to Rs. 6000 per square feet in tier II cities and projects with Rs. 16500 to Rs. 20000 per square feet in the cities like Delhi, Mumbai central will gain good demand.
Builders may be give discount and other attarctive offers on pre launch bids to boost the sales in intial months. Builders with large real estate project with share of unsold inventory will be more under pressure to give discount than those small projects builders and limited inventories.
In 2013, we will see the increase in residential real estate launches in the most of cities of the India. But, there will be declination in launches in Bangalore and chennai than 2012 because in 2012 these two cities make record history in term of the numbers of launches.
Commercial real estate in 2013
Recently, FDI in multibrand retails is approved in the Parliament, it will attract the overseas investors to invest in India and it will also boost the demand of commercial real estate in India. As well as, RBI decrease the interest rate in up coming months, it will benefits the builders, developers and consumers.
In 2012, in major cities like Delhi, Chennai, Mumbai the commercial space absorption was about 73% of total commercial space absorption in India and in 2013 it will be about 76%. In terms of commercial property investment Mumbai, Delhi NCR and Bangalore will be on top. Commercial real estate in cities like Jaipur, Indore and Bhopal will also boom in 2013. The commercial real estate in cities like Gurgaon and Noida, the absorption share of office spaces will be about 80%.
Finally year 2013, bring the lots new opportunities in both commercial and residential real estate investment. You can also see the new face of retail real estate and new segments residential, and commercial real estate with lucrative investment opportunities.