Realty set for growth in 2013

Date : Dec 22, 2012

BANGALORE: The year-end is around the corner. It has been a year of high inflation that led to a tight monetary policy . Despite the demand for some easing in the monetary policy, the Reserve Bank of India (RBI) could not bring down the key policy rates, given the upward pressures on inflation . 

The indications of the inflation rate cooling down towards the end of the year and the moderating growth rate, however , resulted in the central bank infusing more liquidity into the banking system with a cut in the cash reserve ratio ( CRR). 

While this move cheered the markets and home loaninterest rates witnessed the beginning of a downward trend, the more heartening news of deeper cuts in the rates can be expected in the course of 2013.

Analysts are predicting a downward momentum in home loan interest rates as there are concerns of the slowing growth rate before the RBI too that could lead to policy rate cuts. 

Interest rates apart, the opening up of the foreign direct investment (FDI) option in the multi-brand retail sector too is something to cheer about in 2013 for the property sector. This move will mean more demand for commercial retail spaces across the city. Largeformat spaces in the outskirts too will be developed to cater to the major retail outlets expected with the FDI route opening up. 

The year 2013 will also be eventful for the property market here with civic infrastructure projects gaining ground. The seamless Outer Ring Road (ORR) and Metro connectivity projects will get a boost with works progressing towards completion pushing both rental and capital values in the vicinity. 

Given the persisting uncertainty in the Euro zone and Western markets, there are chances of moreinvestments in property coming here. The high returns on investments here in terms of both capital gains and rentals will draw more investments, especially with the better property management services available now. Many pre-launch offers will find favour with investors looking at the medium term. Property here is a safe and lucrative investment avenue. The coming year holds promise of better times for the property sector.

Source: http://economictimes.indiatimes.com/markets/real-estate/realty-trends/realty-set-for-growth-in-2013/articleshow/17717600.cms