Focus should be more on Mid Segment and Affordable Housing Segment
May 18, 2017 Home Trading Steps
2016 has been a crucial year for the real estate sector in India. From the legitimization of RERA to demonetization, a lot of developments have taken place with tremendous impact. Now with the introduction of REIT, the demand may grow in the commercial front by attracting investors by providing them with the ease to invest in real estate market. India is the major outsourcing country for IT, food and manufacturing, raw materials which require commercial space and it is expected that its demand will rise.
The Real Estate Regulatory Authority (RERA) is expected to bring transparency in the real estate sector. The Central government has asked the states to come up with their own RERA rules to improve the hold and governance in the real estate sector. The discrepancies that currently exist are expected to diminish. Buyers face a huge psychological and financial stress when the projects are stalled or delayed indefinitely. RERA is expected to bring transparency and reduce the disputes regarding the same.
RERA has brought forward the rule that the builders will now have to dispose of 70 percent of the money they get from the buyers to another account to ensure the timely delivery to the buyers. Also, if the project has been delayed or if the possession has not been given on the promised date, then the buyer is free to end the agreement or the builder has to pay the buyer the interest for delay.
The real estate market is dived into two sectors: the primary market and the secondary or the resale market. Demonetization has brought the resale market to a slow down as most of the transaction in resale market happened through liquid cash.
With demonetization and RERA coming into force, it is expected that the unorganised builder will blow away. More genuine buyers and renowned builders will only stay and grow forward.
The banks are overflowing with cash due to demonetization. It is expected that the banks will lower their interest rates, motivating buyers to invest more money in the market and real estate. Some banks have already reduced their interest rates by 25 basis points and it is expected that it will reduce 25 basis points further as well. So the buyers can hope for owning the property will reduce rates and reduced interest rates. It is a win- win situation for the buyers.
The builders are now focusing more on the affordable housing segment to provide ‘housing for all’. There has been a high demand for mid segment housing in cities like Delhi, Gurgaon, Mumbai etc. developers are launching the projects to meet the demand requirement.
The Real Estate Regulatory Authority (RERA) is expected to bring transparency in the real estate sector. The Central government has asked the states to come up with their own RERA rules to improve the hold and governance in the real estate sector. The discrepancies that currently exist are expected to diminish. Buyers face a huge psychological and financial stress when the projects are stalled or delayed indefinitely. RERA is expected to bring transparency and reduce the disputes regarding the same.
RERA has brought forward the rule that the builders will now have to dispose of 70 percent of the money they get from the buyers to another account to ensure the timely delivery to the buyers. Also, if the project has been delayed or if the possession has not been given on the promised date, then the buyer is free to end the agreement or the builder has to pay the buyer the interest for delay.
The real estate market is dived into two sectors: the primary market and the secondary or the resale market. Demonetization has brought the resale market to a slow down as most of the transaction in resale market happened through liquid cash.
With demonetization and RERA coming into force, it is expected that the unorganised builder will blow away. More genuine buyers and renowned builders will only stay and grow forward.
The banks are overflowing with cash due to demonetization. It is expected that the banks will lower their interest rates, motivating buyers to invest more money in the market and real estate. Some banks have already reduced their interest rates by 25 basis points and it is expected that it will reduce 25 basis points further as well. So the buyers can hope for owning the property will reduce rates and reduced interest rates. It is a win- win situation for the buyers.
The builders are now focusing more on the affordable housing segment to provide ‘housing for all’. There has been a high demand for mid segment housing in cities like Delhi, Gurgaon, Mumbai etc. developers are launching the projects to meet the demand requirement.
Looking for property portal?
Related Articles
-
-
Plan for Future Investment with Home Budgeting
Apr 10, 2017 -
Things to Make Sure Before Buying a Property
Mar 28, 2017 -
Calculation of the Depreciation of the Property
Jul 24, 2019
See comments (0)
Write a comment
