by Mr. Ravi Saund, COO, CHD Developer..
The year 2013
witnessed India caught between low growth & persistent high inflation of
the last few years. This coupled with depreciating value of rupee, strict
monetary regulations, RBI's revised norms to lending to real estate sector,
curb on subvention scheme and disequilibrium in the political scenario led to
the subdued demand of real estate in India. There was a sharp decline in the
consumer confidence in India as reflected by the Nielsen's Consumer Confidence
Index.
Realty sector could
not remain untouched by this unswerving wave of pessimism.
In a striking
contrast to previous years, festive season in 2013 noticed a lull across the
asset classes.
Regardless of the
market sentiments the residential property prices illustrated skyward progress.
This further led to a decline in absorption compared to the same period last
year.
Cities which
exhibited a sharp upsurge in the supply observed higher decline rate in the
absorption.
 |
| Mr. Ravi Saund, COO, CHD Developer |
Conversely,
affordable locations & a few evolving markets in and around suburbs proved
trade pundits wrong. The top emerging destinations of 2013 were Sohna and
Dwarka expressway in Gurgaon.
Though the year was a
lackluster year for the sector, introduction of Real Estate Regulatory Bill
(RERB) and Land Acquisition Bill LAB) in the parliament brought in some solace.
With economy showing
no signs of revival at least in Q1 of 2014, real estate will continue to show
signs of weakness in line with other sectors and asset classes.
Investors & end
users will continue to be cautious as hurdles to growth will prevail until the
first quarter. Market may look up post the general elections. Stable
government, sustainable policies, conducive RBI Policy, better industrial
growth & focus on industrialization, improved infrastructure and timely
delivery of infrastructure will lead to positive market sentiments. A new
investor will not come in unless the rupee stabilizes. Market will largely be
end user driven.
Q2 looks promising
not just for the sector but economy in general will benefit from the changed
political scenario. Demand in the affordable housing sector will continue to
drive growth.
A developer riding on
good reputation, decent location, right price point and transparency in
delivery will be able to hitch their wagon to success.
Along with Dwarka
Expressway, Sohna is also fast emerging as an attractive destination for
stand-alone developments, group housing and commercial complexes. And the areas
that are likely to report significant growth going forward are Rewari &
Dharuhera."
CHD Developers Limited
Corporate Office
Registered Office
CHD Developers Limited
SF-16-17, 1st Floor, Madame Bhikaji Cama Bhawan,
11, Bhikaji Cama Place,
New Delhi - 110 066
Phone :+91 11 40100100
Fax : +91 11 40100190
Email : info@chddevelopers.com
For Investor Queries :investorservices@chddevelopers.com
Marketing & Sales Office
CHD Developers Limited
SF-16-17, 1st Floor,
Madame Bhikaji Cama Bhawan,
11, Bhikaji Cama Place,
New Delhi - 110 066
Phone :+91 11 40100100
Mobile :+91 9650961115, 9560961115, 9650433449, 9717855447 (Loan queries)
Email :sales@chddevelopers.com
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