With about 6.3% Contribution to GDP, Real Estate sector plays a vital role in Indian economy. The path Real estate market in India has been treading for last two or more years is sluggish as the buyer’s sentiments are rock bottom resulting no fluctuation in prices and dimmer chances of capital appreciation in short-term. But there is silver lining this year in the form of some positive factors which are bound to give a boost to this sector.

1. Interest rate cut: This year witnessed two interest rate cuts of 50 bps in total by Reserve Bank and some more attractive cuts are expected which will certainly brighten the property prospects and a solid base will be established for a surge in demand may be by the end of current year or start of next year.

2. Liberalized payments: This period of inactivity has taught a crucial lesson to developers and they have converged on the path of easy payment plans to call buyers back to the residential home market. Such schemes are bound to enhance the demand.

3. Increase in number of affordable units: The general dilemma of an average Indian household whether or not to initially buy housing units much bigger than their present need has been taken care by the developers these days when they are coming up with more affordable units which will attract small families to buy property.

4. Government’s policies: The declaration of smart cities concept by the central government and their naming is bound to provide enough impetus to Realty sector which was otherwise in deep dumps during past years. The concept of smart cities has fascinated NRI and other communities and a jump in FDI is bound to take the sector to dizzying heights. A lot of money is going to be pumped in through private equity or seed funding. The government on its part has made foreign direct investment in such smart cities easier by carpeting the path for such investments.

There are numerous other factors such as the strengthening of infrastructure in the country and its rapid pace , enhanced industrialization etc. which will also  serve as an impetus to the growth of this sector. It is rightly said that there are periods of leans and highs in every sector and as the realty sector has seen lean periods, its leap to newer heights is inevitable.