Property continues to be one of the leading influential factors for that Indian economy where economic growth is dependent upon its performance. The entire year 2013 didn’t bring about much prospects for that property market which has affected the economy also. Key statistics indicating the slow pace of monetary development in India include decrease in economic performance to fivePercent from 6.5% in 2004, devaluation of rupee when compared with dollar (1 USD = 68.80 INR), elevated rates of interest on property loans and property cost hikes.
These turbulent outcomes might be related to liquidity crunch, extreme fluctuations as a swap rates, expense of input, scarcity of needed work, in growing inflation rates, and also the collective effective of worldwide in addition to domestic economic slowdown. This continuously cause hindrance in property purchasing decisions in 2014 before the cost stabilizes for the whole industry or up until the economic and financial strength of the nation becomes potent enough to supply the way of accommodate our prime prices. Let us check out the probable factors that will have an affect on the performance from the property market in India in 2014.
The Present Condition of Nation-wide Politics determines Recovery of Property Market
With general elections scheduled to become held throughout the month of May, the whole emphasis continues to be laid around the probable connection between the elections. The end result may have key role in figuring out the performance degree of real estate industry. When the elections are gone, the ruling party which comes in power will influence the interest levels and also the relevant dynamics from the property industry. Following a completing the elections, speculators have expressed the potential of gradual recovery of the sector which may in many odds be marked by reduced rates of interest on property loans and decreased cost of land in addition to developed residential / commercial property.
Legal Changes would help promote Faster Recovery of Property Sector
The Brand New Land Acquisition Act and real estate Regulatory Bill which have been introduced in 2013 is going to be instrumental in growing transparency and accountability of property acquisitions in 2014. Specific measures which are aimed in improving the transparency index include relaxation of regulatory measures of FDI, enhanced data availability and strengthening of regulatory framework for real estate sector. Enhanced transparency would help make clearer purchase decisions because of accurate details readily available for various relevant metrics.
