2014 was quite the interesting year for Indian real estate, much like several other sectors. The change in Government brought in the hope of a steady hand at the Centre and this positivity percolated down the ranks to various commercial establishments. New reforms brought in the promise of a better future and the positive sentiment spread among Indian and international investors alike. With all of this characterising the end of the year, 2015 has a great deal for the real estate industry and potential home buyer to look forward to.
A Mid-Range Buyer’s Market All the Way
With the positivity of 2014 spilling over, 2015 will see the tides turning and the sector turning into a buyer’s market. This will be triggered by the positive market sentiment and the expected cuts in interest rates this year. Other things you may expect to see are:
- Many launches in the mid-end and low-end segments at introductory prices, which will have many takers.
- Homes with basic, yet quality amenities at a value-based price point being in focus all through 2015.
Innovation will be the name of the game this year, with builders working on innovative features to gain traction with potential customers, since price escalation is inevitable.
- While the demand for premium housing will still be there, it may not see any increase.
- Social media and online marketing will emerge as a strong means of wooing potential customers, thus helping brands reach out to a wide audience.
Suresh Hari, Secretary, CREDAI Bengaluru, speaks on buyer expectations and explains that there is a need for an attractively priced home, considering that there is huge gap between demand and supply. “I see the Smart City concept taking shape, thereby providing newer avenues of investment. I also feel that there is a need for a more user-friendly interface online to help deal with property related issues.”
A Decrease in Interest Rates a Possibility
Ganesh Vasudevan, CEO IndiaProperty.com, says, “The drastic increase in the number of enquiries over the past two quarters indicates positive market sentiments amongst buyers. The increase in the home loan exemption in 2014 was just the first step of the NaMo government towards its promise of providing houses to all by 2022. In the coming year, home buyers may expect more such buyer-centric policies. Project pricing will be the most critical aspect to attract home buyers this coming year.”
Suresh Hari reiterates this point saying that to ensure that the buyer is benefitted, there is need for home loan interest rates to be brought down to 8% or lower.
There is an expectation of tax exemption limits being increased under Section 80C of the Income Tax Act. This in turn will encourage savings and provide an impetus to buying new homes. The possible tax holidays to the making of affordable homes may result in monetary benefits that may be passed down to the end-user.
All this and more is what a potential home buyer may look forward to in 2015. Key areas in Bangalore that are likely to see development:
- South Bangalore – thanks to better connect with Electronic City through the NICE Road
- The ORR-Marathahalli-Whitefield area and beyond will be in demand
- Devanahalli are some of the areas to watch out for.
It would be a good idea to wait a while to see how the implementation of proposed reforms by the government plays out before making a decision to invest. Market sentiments are good and there is no reason to believe that this will not be a good year for realty, despite burgeoning prices of construction materials.
- 2015 will be the year of mid-range housing projects with innovative features.
- Financial reforms will come into picture, making it a buyer’s market.
- Online marketing and interactivity will characteristic real estate transactions.
- Key sectors in South and East Bangalore will be in demand.
Ali Vakil is the creative and marketing brain behind many widely successful real estate projects. He is majorly credited for the presence of credible and transparent data on the web, helping simplify various issues related to home buying for scores of home buyers.
Ali Vakil is a Chartered Accountant by profession and holds keen interest in Art, Graphics & Web Technologies. He is currently serving as the Director Marketing & Communications at Vakil Housing.