With a strong mandate for the new government to stimulate economic growth, we anticipate 2015 to be a better year for the construction sector with the country seeing increased economic growth and the removal of barriers to foreign investment increasing demand for construction over the coming 12 to 18 months. Reports predict the major growth area to be in the residential housing sector as housing continues to be a favoured investment asset among Indian households. REITs will ensure easy flow of FDI and raise funds for developers which will escalate growth and help developers to improve their delivery rates.
— Prashant Solomon, MD, Chintels India, and Member- Governing Council, CREDAI NCR
‘Hope for big-ticket reforms in near future’
The market conditions, business sentiments and overall outlook in India have improved since the new Indian government assumed power in May 2014. The government has taken positive steps and also generated hope and optimism around big-ticket reforms in near future. This has brought cheer to the stock markets hoping that the reforms would translate into business opportunities and economic revival. The steps being taken in real estate are encouraging and as we move closer to another new year, many of the steps, such as launch of REITs and relaxation of FDI, and anticipated measures like modifications in new land acquisition law and real estate regulatory bill, will enable India’s real estate industry to flourish.
— Rajiv Mohan, Managing Director, Cherry Hill Interiors Ltd
‘Results will show in Q2 of 2015-16’
2015 looks positive. Most of the steps taken by the government are expected to show results from the second quarter. Interest rate, too, is expected to be cut in RBI’s next policy. The budget will play a crucial role in defining the government’s vision for the economy and the way in which it envisages to achieve its goals. The Housing for All by 2022 mission along with the policy on Smart Cities augurs well for the real estate sector. At the state level, too, infrastructure execution has to be faster. It is imperative that state governments take the onus of developing hubs for providing basic social and physical infrastructure and employment opportunities.
— Mohit Goel, CEO, Omaxe Ltd
‘India is once again an investment option’
The effect of policies and amendments announced in 2014 will be visible in 2015. Companies are looking at India again as an investment option and with development of infrastructure in Tier II & III cities we have seen increased demand in commercial real estate sector. Positive policy changes and encouraging measures like REITs, implementation of Real estate Regulatory Bill, FDI and development of smart cities will further accelerate the growth in coming year. REITs especially will help improve the balance sheet of cash-starved developers whereas Real estate Regulatory Bill will help credible players with a long-term interest in the market grow.
— Anubhav Jain, Director, Group Silverglades
‘Government needs to regulate steel and cement prices’
I see lack of energy expected in some bureaucrats which is a matter of worry. Yet, we see the glass half full and the remaining half is filled with hope. The continuous fall in fuel prices is not translating into price reduction of inputs like cement, steel and even transport. The government needs to regulate steel and cement prices just as the power regulators monitor tariff. Domestic construction industry has been jostling with steep and steady rise in prices of cement, steel rods, bricks and other input material, which have risen by over 30 per cent since last three years. The input cost on account of labour in the construction industry has increased as well. Besides rising prices, high lending rate by banks has hit the realty sector severely.
— Lalit Kumar Jain, Chairman, and CMD, Kumar Urban Development Pvt. Ltd