With the ups and
downs in the realty sector and many policies amended and introduced by the government
to bring stability in realty sector, let us take a look at the recent updates
and happenings in the real estate market.
Dip in demand forced developers to compromise
with property price:
A month ago, the slowdown in demand across many cities in the country forced the developers to reduce property price. With the dip in demand by the end-users, developers were left with no options other than reducing the price of the properties. To attract potential buyers, developers were forced to compromise with the property price by waiving off addition charges that they used to charge the buyers such as parking cost, preferential location charges, and many others.
SEBI proposed listings of real estate
investment trusts (REITs):
To draw more investments into the capital market and to bring accountability in the real estate market, SEBI proposed a draft Real Estate Investment Trusts (REITs). It is said that REITs is more like mutual fund in real estate and this move by SEBI was to provide an investment platforms for investors with huge fund, who can trade units of REITs. Seeking public comments, SEBI has invited everyone to leave their feedback and opinions on the drafts for REITs regulations.
CREDAI expressed its View about Listing of
Real Estate Investment Trusts:
Welcoming the
proposal of SEBI on listing of Real Estate Investment Trusts (REITs), CREDAI
said that this move is positive and will help more liquidity problem that the
developers often face.
Residential property prices moved up at a snail’s pace in the first quarter of fiscal year 2013-14:
In a recent report in
Macroeconomic and Monetary Developments Second Quarter Review 2013-14 by RBI
revealed that in the first quarter of fiscal year 2013-14 the
quarter-on-quarter growth at all-India level in the Reserve Bank house
price index was lower by 0.89 per cent, which was slow move in housing prices
and though it was 14 per cent higher when compared to the housing prices of a
year-ago.
With the government taking many measures and passing many regulations in order to bring accountability, transparency and reduce liquidity in the realty sector, many builders and developers like Prestige Groups, Salarpuria Groups, Brigade Groups And others do anticipate that these measures will give most the developers and builders some relief.
Readers and potential buyers to know more about builders’ offers and reputation can also go through the property reviews.
