 "Housing sales dip in 2014; realtors eye turnaround in new year")
Developers were hopeful that property market, which has been witnessing demand slowdown since last few years, would be back on track in second half of 2014 on improved sentiments after the new government came to power but that did not happen and rather housing sales were slow even during festive season.
In commercial real estate, leasing of office space was higher although the activities were subdued in retail segment. Rentals remained stable during the entire year.
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Like 2013, cash-starved developers faced the problems of huge unsold housing stocks and buyers' protest against delay of up to 6-7 years in delivering projects, forcing them to focus on completion of projects instead of launching new ones.
Developers effort to boost demand by offering discounts and relaxing payments schedules did not help as home buyers kept waiting for correction in prices and interest rates.
Amid these negativities, some positive announcements came from the new government in form of approval for Real Estate Investment Trusts (REITs), relaxation in rules for foreign direct investment (FDI) and setting up of 100 Smart Cities.
These did not have an immediate impact on the market, but realty firms and property experts believe that the interest of global investors would revive in the sluggish property market with these two measures.
The year also witnessed some big-ticket property deals and increased investors interest in realty portals.
While in the beginning of the year realty major DLF sold luxury hospitality chain Amanresorts for Rs 2,200 crore, the Sahara group sold 185 acre land in Gurgaon to M3M India for over Rs 1,200 crore this month.
Private equity (PE) investment in the realty jumped more than two-fold to Rs 8,900 crore in January-September period and the figure is likely to cross Rs 12,000 crore by year-end.
"This year was challenging. It was worst in five years in terms of sales," CREDAI, the apex realtors' body, Chairman Lalit Kumar Jain said.
He noted that the realty market would be better next year in terms of sales if interest rates go down and the government brings reforms like single-window clearance, online approvals for projects, lower taxes and permission for building more area on a land parcel.
Property Consultant JLL India Chairman and Country Head Anuj Puri also said that "2015 will definitely be a good year for the real estate sector...As borrowing rates are sure to go down from the current levels".
"...With property prices staying stable and good deals being offered by developers in order to clear their inventory, fence-sitting buyers be further encouraged to press the 'buy' button," he observed.