There has been a lot of debate about what exactly are the parameters and point of discussions of Property related issues in India especially in 2015. With the coming of the new central government a lot of discussions and debates have gone in to the analysis of the economic issues. The strategy of the new Government in real estate issues have been a major focus of analysis.
U.S. economy, the market and property fundamentals, and the availability of an array of funding sources, the commercial real estate (CRE) sector is poised for strong growth in 2015, according to Deloitte’s 2015 Commercial Real Estate Outlook. Nevertheless, industry executives continue to face challenges, such as nontraditional competitors, the evolving threat of cybercrime and rising cost of regulatory compliance.
“As technology usage increasingly determines tenant leasing decisions, asset values and real estate demand, companies cannot afford to ignore adoption of sustainability measures and smart building technology,” observes Bob O’Brien, vice chairman and Global and U.S. Real Estate Services leader, Deloitte & Touche LLP. “Leveraging technologies such as social, mobile and analytics will be increasingly important to drive operational efficiency and improve tenant loyalty,” he says.
Indian industrial and technological growth will not be possible until and unless the major economic issues are dealt with in a more serious manner. Real estate business in many parts of the nation faced major crisis and problems in the last few years. But the expectation of the real estate businessmen and investors from the new central Government is immense. With the 2016 Budget the expectations are bound to rise in near future. Problems are there but lot of major issues and problems can be dealt with and rather solved to a large extent with slight modifications and amendments of policies and strategies.
The improved economy will strengthen rent growth and occupancy rates while bolstering global and domestic investments in U.S. CRE. The risk of rising interest rates can potentially impact property cap rates and the cost of financing real estate, which could mitigate the otherwise positive trends favoring CRE growth.
In the world of Globalization, Westernization and Modernization the world has been brought under one roof. Changes in economy in one part of the world are bound to impact and even alter the economic scenario of other parts of the world. In such a scenario India being a 3rd world nation cannot be completely free of impact of the changing world economy.
A broad-based recovery for CRE financing appears underway, with lenders increasingly competing for commercial mortgage issuances across all markets. Construction financing is also showing signs of revival, albeit at a slow pace.
Investments are pouring in from many sectors and businessmen, investors from many parts of the world are already showing interest in Indian economy and real estate business. Transaction activity will likely continue to rise in 2015, benefiting secondary and tertiary markets. Hence the expectations from the new Central Government will always be high so that along with real estate business the general economic condition can improve.