The industry observers and investors consent
that the real estate sector is the biggest job producing sector and has
outstanding infrastructure and reasonable property approval therefore it has
assisted in increasing the investments in this sector. The sub-sectors
including retail, commercials, hospitality and retail are developing as they
are connected to industries that should increase the rate of employment and
economic development. The real estate sector in India has been a varied sector
of growth in the last decade. According to a report the growth of real estate
sector in Delhi-NCR region begin in the year 2001 and end till 2010. The
real estate investments increasing with rapid urbanisation due to explosion of
nuclear families that are increasingly moving into apartments. The factors
including FDI money and higher disposable income in several sectors like
retail, manufacturing and services has also increased the growth. The NBFCs and
Banks has also increased loaning that has directed to a more demand of real
estate due to which developers began to provide discounts and schemes. The real
estate segment of NCR displayed flexibility in the decelerated period. The
prices of residential real estate are likely to grow due to limited supply of
land coupled with increment in the construction cost. According to the Delhi
Master Plan 2021, the population pressure is expected to move up from 18.2
million in 2011 to 19.9 million in 2016 and to 23 million in 2021. The
population is predicted to increase up to 225 persons per hectare in the year
2021 simply for Delhi National Capital Territory as specified by the Delhi
Master Plan 20121 from 112.97 persons per hectare for Delhi NCR as specified by
the Census 2011. Therefore, demand is predicted to influence the micro market
that should influence the price increment. According to International property
consultancy Delhi NCR is the biggest urban agglomeration in India and second
largest globally.
The Delhi NCR market is attractive because it has
an independent planning board that comprised to direction and channel flow of
economic growth and development with spatially and balanced slanted ways. All
three real estate sectors of Delhi-NCR including retail, residential and office
are exhibiting growth due to suburban towns covering the major city. The
drivers of market in these regions are significantly unexploited development
possibility in these regions and considerable affordability and financial
viability that provide both end-users and developers. NCR market has fared both
in terms of launches and absorption in the wake of cautious consumer
sentiments. The NCR market is striving for a better equilibrium and developers
focusing on project completion and deferring new launches. The residential market of NCR demonstrates a
careful viewpoint due to the retardation in both projects absorption and
launches. Developers are experiencing the liquidity crisis due to restricted
entree to both local and international funds significant for slowdown in
construction action resulting in project delays. The confidence level of
consumers has been spoiled due to increased interest rates, present economic
outlook and inflation. A RICS India Commercial Property Survey articulates
that response of the Indian occupier and investment real estate markets has
been strike due to declining levels of growth in the economy, consistent drop
the value of rupee, high retail inflation and subsequent rise in key policy
rates.
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