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What's In Store for Indian Real Estate in 2013?

In 2012, the market has brought discouragement for the developers in real estate which is why it is now a big question on how the market performance would be in 2013. This article speaks about the insights of India’s real estate market in 2013 from real estate expert, Ashutosh Limaye, Head- Research & Real Estate Intelligence Service, Jones Lang LaSalle India. Some of the points covered in this article are listed below, reports Moneycontrol.com.Policy initiatives

This New Year, developers are hoping for an optimistic future for real estate segment with the government’s plan to give realty sector an industry status and favourable policies, after a long wait. The government had instigated certain policies in favour of real estate industry at the end of 2012, and this current year will witness many of such favourablegovernment policies being implemented. Few of these policies are the most awaited real estate regulatory bill, the real estate investment trusts (REITs), the real estate mutual funds (REMFs), likely to get introduced this year; and the Land Acquisition and Rehabilitation and Resettlement Bill.Several market experts believe that thisNew Year will bring changes that will help real estate industry to revive. In India the residential real estate sector will witness a new trend when the proposed Real Estate Investment Trusts (REITs) will allow investments in rental housing. It means the structure of this policy is expected to drive the investors demand for housing mainly in prime cities in India. Moreover, from past two years, the country is witnessing a trend where the absorption rate for volumes under the range of 2000-3000 a square feet was more. And, this year, the range is likely to increase a bit to 3000-Rs5000 a square feet in the midst of high inflation and soaring construction costs.

Office space absorption

In 2013, the rate of absorption for office space is expected to be the same like last year. This year, the hunt for office space in prime locations is likely to rise and these office spaces will fetch premium revenues. Rental amount may also witness a stiff rise due to