Indian real estate developers, shaken by poor market in 2015, are now optimistic that this year will witness buoyancy as they pin their hopes on the passage of the Real Estate (Regulation and Development) Bill.

The long-awaited Bill, which aims to protect buyer interests, had gone to a Select Committee of Parliament that has recommended changes, newspapers have reported.

The Ministry of Housing   has accepted these changes, after which the Cabinet gave its approval on Dec 9 with further amendments. However, the Bill could not be passed in the recently concluded winter session of Parliament because of disruption by a section of MPs.

Developers also expect schemes such as Smart Cities, Atal Mission for Rejuvenation and Urban Transformation, Housing for All by 2022, and easing and simplification of foreign direct investment (FDI) rules in the construction sector, to create a positive ripple effect in 2016.

Smart Cities Mission is going to be a future growth centre for the real estate sector, said developers. They believe year 2016 is likely to begin on a cheerful note on the back of reforms and increased investor confidence.

Sanjay Dutt, Managing Director, India, Cushman & Wakefield said: “The government’s easing of FDI policy, the probable implementation of the Real Estate Bill and Smart Cities plan, and introduction of real estate investment trusts (REITs) will bring in transparency and enhance investor confidence in the coming years.”

Developers are also hopeful of market revival in view of reduced rate of interest. Commercial real estate is also poised to revive further. Year 2016 is likely to witness net absorption of office space of approximately 30-32 million sq ft, which is higher than 2015 levels.

This buoyancy is expected to trickle down to the residential sector in the medium-to-long term, spurred by lower interest rates, higher consumer confidence and government initiatives to boost the housing sector, said Dutt.

Despite conventional headwinds, relaxation in FDI norms, lower interest rates, focus on housing and infrastructure development are all triggering a gradual turnaround in sentiment that’s poised to gather momentum in 2016.