Realty Outlook for 2016 by Unishire MD

Mr. Pratik K. Mehta, Managing Director, Unishire

Outlook for 2016 is definitely positive and bright for the sector. 2015 started with a hope but the non-conducive environment did not let it flourish. However, 2016 is different as we have already started feeling the inflow of positivity amongst the home-buyers. 2015 has witnessed introduction of not one but many home-buyer friendly initiatives which are to bear fruits in the coming year.

The year witnessed introduction of important initiatives by government that have direct bearing on the sector. These are "Housing for all by 2022", "Smart Cities", "AMRUT cities" and opening of FDI in realty and infrastructure sector. Adding to the feast was reduction of 125bps (1.25%) in lending rates by RBI.

Economic growth of the country witnessed a big boost when it recorded a GDP of 7.5% in the last quarter which is higher than China for the first time. Macro-economic factors are not just in control, they show strong promise of staying the same.

The year of 2015 observed loss of home-buyers confidence. With the new avatar of Real Estate Regulatory Bill, the lost confidence is bound to come back. In addition, the bill is going to bring much more transparency and stability to the sector. These coupled with robust commercial office space absorbed and planned, paint only a strong optimistic picture for the sector.

With so many triggers in favour of the sector, 2016 will be witnessing the much awaited uptick and return of much desired confidence. Real estate has, time and again proved to be one of the best investment options, an asset that is tangible and stable and has, in a long-term only one trajectory to follow - Upwards.

Areas of growth in the sector for Bengaluru region

Overall, we are likely to see absorption of affordable homes falling within the range of Rs. 40-80 lakhs to be in great demand. If we further go into the promising areas then few areas to shine are:

North Bengaluru - Thanisandra, Hennur
East Bengaluru - Hoskote, Sarjapur, Varthur
South Bengaluru - Kanakpura road, Arekere, Gottigere (Bannerghatta Road)
West Bengaluru - Yeshwantpur

We could sum up by saying that 2015 was the lull before the (growth) storm that is to hit the sector in 2016.

Source : Equity Bulls

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