Expectations from 2013 market
- Day after Rahul Gandhi slams PM Modi, Amit Shah condemns politics over surgical strikes
- Prohibition to stay in Bihar: SC stays Patna HC judgment setting aside liquor ban
- US says does not support declaring Pakistan a 'terrorist state'
- Talk on stage at Parrikar event: 200 killed, atom bomb vs atom bomb
- Hurricane Matthew: Haiti death toll rises to 339, deadly storm hits Florida
The bill boards along the roads to major towns are again displaying housing ads in the new year. Developers feel that it is best to forget 2012 and expect that strong underlying fundamentals, several initiatives by the government and price corrections will take real estate sector on an upward trajectory during the year 2013.
But for buyers the big news this year is that of a de facto regulator emerging for the sector. The Competition Commission of India is understood to be investigating about 70 developers across the country for abuse of dominance.
The Commission has already modified the buyer-seller agreement for DLF in two projects in Gurgaon. And this order is a follow through of its order in August last year imposing a stiff penalty on the real estate company.
These are the news that could reverse the slowdown in housing credit in last calendar year. From January 2012 through to the end of the year, housing credit from banks has risen only 8.6 per cent. The positive element is that is marginally better than 2011. The ever increasing cost of inputs, inflation and a weak job market has dampened the demand for houses.
Post the CCI order it will be interesting to see if prices of property correct.
There have been a few infrastructural and financial initiatives started by the government last year, which will begin to show positive impact and act as catalysts for new projects in 2013.
"Greater Noida metro rail network, and the proposed metro link in north-west Bangalore as well as on-going metro rail, Outer Ring Road, Extension of MRTS etc. projects in Chennai are expected to have a positive impact on the residential real estate sector of these cities," says Anshuman Magazine, CMD, CBRE South Asia, a real estate consultancy.
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- Breakdown of LoC ceasefire will make it difficult for army to control infiltration
- Academic publishers suit shows how much they benefitted from intellectual commons
- Lack of unity has prevented Sindhi nationalists from pressuring Islamabad
- India must be prepared to deal with a disease that is growing globally
- Challenge for India’s leaders is to show that strength can be blended with subtlety & deftness