Thanks to Demonetisation: No More Correction in Housing Prices
May 17, 2017 Home Trading Steps
There is no doubt about the fact that the face of real estate industry has changed after the government has taken the drastic step of demonetising the old Rs 500 and Rs 1000 notes. The primary reason behind this is that a huge amount of financial transaction used to happen through cash payments. And this cannot happen anymore. That is one of the reasons why the real estate industry is still in a state of shock. The market is lull as the customers are not so sure whether this is the right time to invest their money in this sector.
So, this article will give you a clear picture of the current situation in the real estate sector which will help you to take the right decision:
According to developers, the affordable housing market is not likely to see any further price drop in the recent future. The most significant reason for this is demonetisation.
Moreover, due to the sluggishness in the market over the last few months, property prices have already been affected. Therefore, there is hardly any scope for further correction. Although the luxury property market, as well as the resale property market, is likely to see a correction in the prices.
However, there is good news for developers and customers as the home loan rates are expected to be reduced by as 6-7 percent which is quite low compared to today’s average which is more than 9 percent.
Some real estate experts had anticipated that demonetisation would result in correction of prices in the residential property markets. But there has been no such development in the last few weeks at least in the primary sales. However, it has been informed that in some places circle rates are higher than the market rates. This has made the scope for undisclosed transactions limited. Based on these trends, the real estate gurus are speculating that, if at all there is a correction in the land prices, there might be an effect on the end product.
The Developers are complaining that all these speculations, regarding reduction in residential property prices, are making the customers further confused. Therefore, instead of investing their money, the customers are now waiting for the economy to get back on track.
But the fact is that the prices are already at the lowest possible levels. No margin is left for the developers to reduce the property prices any further, especially at the affordable housing segment level.
But, unfortunately, the customers seem to be still very perplexed and right now they are waiting for some more clarity before making any decisions. However, the developers are hoping that their confusion would be dissolved very soon.
So, this article will give you a clear picture of the current situation in the real estate sector which will help you to take the right decision:
According to developers, the affordable housing market is not likely to see any further price drop in the recent future. The most significant reason for this is demonetisation.
Moreover, due to the sluggishness in the market over the last few months, property prices have already been affected. Therefore, there is hardly any scope for further correction. Although the luxury property market, as well as the resale property market, is likely to see a correction in the prices.
However, there is good news for developers and customers as the home loan rates are expected to be reduced by as 6-7 percent which is quite low compared to today’s average which is more than 9 percent.
Some real estate experts had anticipated that demonetisation would result in correction of prices in the residential property markets. But there has been no such development in the last few weeks at least in the primary sales. However, it has been informed that in some places circle rates are higher than the market rates. This has made the scope for undisclosed transactions limited. Based on these trends, the real estate gurus are speculating that, if at all there is a correction in the land prices, there might be an effect on the end product.
The Developers are complaining that all these speculations, regarding reduction in residential property prices, are making the customers further confused. Therefore, instead of investing their money, the customers are now waiting for the economy to get back on track.
But the fact is that the prices are already at the lowest possible levels. No margin is left for the developers to reduce the property prices any further, especially at the affordable housing segment level.
But, unfortunately, the customers seem to be still very perplexed and right now they are waiting for some more clarity before making any decisions. However, the developers are hoping that their confusion would be dissolved very soon.
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