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A POSITIVE RISE IN THE REALTY SECTOR

A POSITIVE RISE IN THE REALTY SECTOR

• Historically low investor demand in the last 3-5 years has lead to a accumulation of demand which is usually followed by a demand surge.

• In 2016 real estate prices are still at 2013 levels.

• Inflation in India 2013 was marked at 10%, in 2014 at 6.4% and in 2015 at 5.9%. Over all 22% inflation has been marked in the last three years. As understood by the inflation effect realty prices today are at a 22% discount

• Salaries have gone up by at least 25% in the last 3 years which is followed by a rising affordability,

• Housing loan interest rates have come down from 10.45% in 2014 to 9.4% in April 2016 and is expected to reduce further to 8:5% in 2016:17.

• Housing finance has emerged as the most secured lending vertical and has seen minimum loan impairment. This has in return made significant[y higher funding available for potential home loan applicants.

• Even today monsoon is very effective on Indian consumer sentiment and after the last 2-3 bad monsoons 2016-17 is expected to be the trend breaker as studied from the forecasts.

• 7th pay commission recommended a pay hike for the central govt, employees. The payouts will start coming in the market from June- July.

• There is a liquidity of 1 lac Cr, from Central govt. The State govt are expected to follow soon. There will be a 1 lac Cr, liquidity from states as well.

• The commercial property market has been positive in the last 12 to 18 months, More than 30% increase in office space absorption in India clearly signals higher jots creation across the country.

• Residential demand always follows commercial space sale.

• Indian economy number is improving in the last two years.

• GDP growth rates in 2012-13 was 5.4%, 2013-14 was 6.3%, 2014- 15 was 7.2% & in 2015- 16 was marked at 7.6%. It is expected to touch 8% in FY 2016-17.

• Fiscal deficit is expected at 3.5% in 2016- 17_ it was 3.9% 412015- 16 & at 4c1/0 in 2014-15 & 4.5% in 2013- 14.
• Inflation is under control.
• Tread deficit has been narrowed .
• Current account deficit narrowed.
• Highest FDI INVESTMENT. 
• Positive stock markets 
• Increase in the government spending towards infrastructure and railway.
• Good policy initiatives taken by GOI in budget 2016.
• Implementation of RERA will create positive sentiment towards real estate industry and unwanted real estate supply from fly by night operator will stop because of RERA.

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Axiom Landbase

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