The year 2013 is expected to be a boom year for economy as a whole. This is more expected in the real estate sector. Real estate sector expects to thrive in 2013.

Real Estate Sector: ready to thrive in 2013

Real estate sector went through a tough time in the year 2012. The year was noted for its slow pace and declined market. Lower sales and higher construction costs affected the real estate developers adversely. In short the year 2012 was a very difficult one for the real estate developers of India. They faced a tough economic condition as sales stooped down.

Lalit Kumar Jain, National head of CREDAI (Confederation of Real Estate Developers’ Associations of India) expressed his hopes of revival in the year 2013. He said that the year 2012 was a year of loss especially because no corrective step was taken. He moaned that the 2012 remain as a lost opportunity.

Real estate consultancy firm Jones Lang LaSalle India’s Chairman & Country Head, Anuj Puri appeared more confident over the real estate renovation. According to him real estate boom will be more in the final-half of 2013.

The RBI (Reserve Bank of India) has, in recent times, allowed reputable real estate developers to raise funds up to $1 billion. The RBI also has permitted established housing finance companies to raise an equivalent fund. With this new rule the real estate builders and finance companies can raise funds through external commercial borrowings.

Apartments with the price tag ranging between Rs.4,000-5,500 per sq. ft. were largely sold in areas like Noida and Navi Mumbai. Apartments of same price rate was highly demanded and sold in Bangalore too. In Central Mumbai housing units with the price range of Rs.16,000-19,000 per sq. ft. range too had higher demands.

Knight Frank India’s Chairman Pranab Dutta opined that the foreign direct investment in retail (FDI) will also play a key role in the development of real estate in the year 2013. He added that this will boost the demand for commercial space.

Real estate sector expects to reap the benefits of Real Estate Regulation Bill and the Land Acquisition Bill in the coming year. However many of the real estate developers opine that only a single window clearance’ will enable them to complete the projects in time. Puravankara Projects Group CEO Jackbastian Nazareth said that the main growth will be in the second half of 2013. He demanded the correction of interest rates for the sake of common man.