We Can Expect Homes Sales Graph To Go Up In 2016: Sanjay Rastogi, Saviour
Source : The Economic Times
After a prolonged slowdown, the real estate industry is now hoping that new measures by the government such as housing for all and opening up of foreign direct investment alongside softening of interest rates could bring in the much needed push for the sector. ETRealty.com spoke to Sanjay Rastogi, director, Saviour on what 2016 has in store for the industry. Excerpts:
How would you describe the current situation of the real estate market in India in 3-4 lines?
With an increase in well-informed customer base and considering the aspects of globalisation, Indian real estate market is growing leaps and bounds. Real estate sector has started taking corrective measures along with governments push to support the recovery of the sector which was in a slowdown state in past few years. At present realty market is improving and we hope to see mammoth growth in coming years.
How do you see the real estate market changing in 2016? Do you see an improvement in buyer sentiment? What is your advice to them for buying homes in 2016?
Tier-1 cities have witnessed epic construction activities both in terms of properties as well as physical infrastructural developments over the years. In coming year, it is expected that builders both big and small will head towards Tier-2 cities like Jaipur, Chandigarh, Lucknow, Pune, Chennai where there is huge demand for affordable and luxury properties with a large scope of price appreciation too. Real estate sector is witnessing positive sentiments both of buyers as well as developers which will continue in coming year too. Outlook for 2016 is positive and buyers as well as investors can reap good benefits from mid to long term investments.
Interest rates have dropped a bit over the last six months. Have the funding woes for real estate developers started to ease? Are there any new funding avenues for builders today?
Lesser rates will of course attract new customers and we can expect the sales graph going up in the coming year. The government has allowed easier foreign direct investments in real estate sector which is expected to give boost to investment in realty sector. This would be beneficial for developers as well because we do not get any kind of loans or funding from financial institutions for construction of our projects. FDI will somewhere reduce our financial burden.
What are your expectations from the Union Budget 2016? What will be the impact of GST and real estate regulatory bill, if cleared in 2016, on the real estate sector?
While government has already taken measures to revive real estate market, we are expecting more good news from Union Budget 2016. We are very positive that real estate sector will get its share from the budget which would further support the growth of real estate sector. GST Bill and Real Estate Regulatory Bill will have positive impact on realty market. With real estate sector hoping for better and streamlined tax regime, GST bill will bring huge relief to the sector. The tax element in the property price payable by buyers will be reduced to a large extent. Clearance of Real estate bill will also be a welcome move, as it will not only change the way how real estate sector functions but on the other hand it will also benefit all the parties involved in realty transactions.
Which are the three top micro markets in India today from an investment perspective on which you would bet your personal monies for medium to long term?
The most lucrative investment destination is Delhi NCR. The region has great infrastructure and has value for money disposition. The entire region holds great potential in terms of residential as well as commercial properties. Madh-Marve in Mumbai, Vishrantwadi and Viman Nagar in Pune, Madhapur in Hyderabad are some of the growing markets across the country those have topped the micro markets list in India.