Property Developers, Property Consultants and Housing experts predict a string of factors that are likely to contribute to a boom in the realty sector in the 2010 year “Prices in prime areas will continue to rise in 2010. After the slowdown in 2008 and the steady resurgence in 2009, the real estate sector is all set for a an ascent to new heights in 2010, thanks to considerable course corrections. The prices in prime areas of Mumbai like South Mumbai, Powai, Chembur and the western suburbs will continue to rise in 2010. There is a sharp increase in supply in peripheral areas like Navi Mumbai and Thane, prices even in these areas will remain firm in the coming year.
If you talking about Delhi NCR property then it will definetely hit because of upming 2010 commonwealth games in delhi. Much of the onus for kickstaring this new growth phase will lie on the state government that is keen to provide affordable homes to the masses. “If the government takes the right initiatives, affordable housing will become a dream come true for the middle class buyers,” said Hiranandani, adding that steps like single-window clearances, expedited permissions, adopting of township policy and extension of incentives for mass housing will be a huge contribution by the government for the creation of an affordable housing stock. Developers are also doing their bit to ensure that the fraternity doesn’t introduce steep price hikes that could derail the demand. “Demand has picked up in the past few months. The coming year should see some robust activity, both in terms of volume sales and price points. Hopeful that 2010 will be a year of consolidation as well as expansion.
Prices of residential properties as well as commercial properties are likely to see a steady rise in 2010. Irrespective of the location, office spaces are likely to witness appreciation across the india. The sharpest rise in the commercial sector is likely to be witnessed in india, with the average rate for premium office spaces in metro cities hovering between Rs 20,000 to 30,000 per square foot.
The pace and scale of growth in commercial realty will be led by the Tier 1 cities of Delhi NCR and Mumbai, with other markets also witnessing gradual growth in the later part of 2010,” says Priyankar Bhikshu, head of India Research at global realty adviser DTZ. Commercial and office properties in the prime suburban areas of Powai, Malad, Chembur, Navi Mumbai and Thane are also likely to witness an upswing in 2010. From the point of view of investors, who are scouting for returns-intensive opportunities, the saturated markets of the metropolis offer little scope for appreciation. Experts advise that they should explore new destinations in Tier 2 and Tier 3 cities that have better potential for good returns. Real estate stocks offer yet another attractive opportunity for investors. Even during times of crisis, like the recent Dubai meltdown, real estate stocks have often outperformed the broader stock market..
The BSE realty index gave a return 9.57 per cent post-Dubai FILE PHOTO scare, compared to the BSE Sensex gain of just 1.96 percent. Even on a monthly basis, realty stocks generated a higher return of 15.30 per cent to Sensex gain of 11.56 per cent. The sentiment towards real estate sector has improved after lenders slashed their housing loan rates. The last four months of robust economic numbers, along with better-than-expected GDP growth, signifies the underlying strength in the domestic economy. That augurs well for the real estate sector.