Real Estate: Outlook For 2018
RERA has a plethora of advantages which shall help the home-buyers in manifold ways
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As far as the performance of the Indian real estate throughout the year 2017 is concerned, the initial few months witnessed drastic changes in the system due to which sales went down while everyone was busy grasping and adapting to the after effects of demonetization in Real estate and all walks of life. In the later months of the year also the sale volumes of High end and mid segment did not pick up due to the changes brought about by RERA and GST coupled with the after effects of demonetization. So buyers were following the wait and watch policy and letting the new changes settle down first. In the mean time, the demand for Affordable housing has soared tremendously in the last one year.
Talking about the most recent policy reform which is in the reckoning is that under the PMAY ( Prime Minister Awas Yojna), the earlier MIG-1 carpet area of 90 sqm has been increased to 120 sqm and the earlier MIG-2 carpet area of 110 sqm has been increased to 150 sqm. So the housing under the above categories shall avail the benefits, subsidies and loans of the PMAY which is expected to give a big boost for the real estate market in the coming year 2018.
Now the situation has come back to normalcy in the last one year as far as after effects of demonetization are concerned. The current buyer sentiment is of wait and watch before taking a plunge into buying high end and mid segment housing due to changes taking place because of GST and RERA. Also these changes are totally new and buyers will take some time to grasp and get used to them.
After the demonetization step having been taken, the fund flow in banks is increasing tremendously which is going to have a positive effect as far as banks giving housing loans are concerned. It is expected that the bank housing loans’ interest rates may fall due to increased fund flow in banks and getting the bank housing loans may become cheaper. Positively predicting such a scenario, this may prove beneficial for the buyers and shall inculcate more interest in purchasing property. The low interest rates if they happen will create more enthusiasm in buyers and more people shall go for the buy in the situation of low interest rates and housing loans becoming cheaper.
The impact of new policy Real Estate Regulatory Act (RERA) is positive as it has taken into consideration the various issues and problems prevailing in the Real estate sector and has addressed them diligently so that the ultimate buyers do not find themselves in doldrums with unnecessary delay in projects and also bringing in more transparency and fairness in the deals and procedures. RERA has a plethora of advantages which shall help the home-buyers in manifold ways.
RERA shall lead the sector to be able to attract more FDIs. This is set to improve the feasibility of financing options availability in the market leading to increased investments and propelling more FDIs and thereby making the system more efficient and home-buyers friendly.
Hence the expectations in the year 2018 are positive with after effects of demonetization, RERA & GST having been settled and making the Real estate sector more streamlined, systematic and structured and more emphasis being given on Affordable Housing which is a win-win situation for the masses and all stakeholders.
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