Real estate sector to revive in 2013

Real estate experts hope that after a dull year, the year 2013 is expected to bring back hopes of growth to the real estate sector. This is primarily due to the government’s positive approach towards reforms and moderation of interest rates, experts say.

Land Acquisition and Real Estate Regulation Bills are expected to be passed during the Budget Session of Parliament in February. Experts are hopeful of a possible rate cut by the Reserve Bank of India (RBI) bringing down the interest rates.

The recent spate of reforms initiated by the UPA Government has shown a sense of seriousness at the top level. The Government has realized that the path to economic recovery lies in comprehensive reforms and accordingly has takes steps to further liberalize economy.  

The passage of FDI in multi-brand retail by the government shows its seriousness on introducing reforms. RBI can be expected to lower interest rates in the coming months which will benefit developers as well as consumers. The measure will further boost the sentiments in the economy.

Accordingly, the residential prices, which have been increasing over the past few years, are likely to fall a tad in most markets in a short to medium term till the unsold units are not been cleared.

Finance minister P Chidambaram had recently asked the developers to sell their unsold inventory at a lower price.