Risks to economy will continue in 2014 on high inflation: RICS

It said a revision of repo rate by 0.25 per cent in October by the Reserve Bank will help in reviving the economy in the long-term.
RICS, the UK-based self-regulatory body for qualification and standards in land, property and construction, said the upward revision in repo rate in October by RBI is likely to increase pressure on real estate developers.
"From the consumers' perspective, this revision will also affect the sentiment, as retail loans will become costlier. In recent times, some banks have already revised their lending rates," it said.
It said supply situation will remain subdued due to the deferred completion of a number of new projects and reduction in number of launches across both residential and commercial categories.

According to RICS, residential real estate prices will witness only marginal increase in 2014 due to costly loans. However, the market is poised for growth in second half of the year after general elections in May 2014.
"Buyers can be cautiously optimistic of a healthy recovery in the real estate market, as existing conditions favour long term investment horizon...Going forward the supply situation will remain subdued due to the deferred completion of a number of new projects and reduction in number of launches," it said.