CREDAI Says: Better Days in Realty Sector for Bhopal
Apr 14, 2017 Real Estate News
There is no doubt about it that real estate market across India has been badly affected by demonetisation. But Bhopal seems to be an exception. Rather MP unit of Confederation of Real Estate Developers Association of India (CREDAI) says better days are ahead for the sector.
The real estate sector in Bhopal has not been sailing smoothly in the recent years. More than 15000 housing units have been waiting for possession. Many among these are ready to move apartments. The possible reasons behind the slump in the property market have been attributed to lack of funds and higher rates of property after government guidelines.
But finally, there seems to be a silver lining. CREDAI is expecting a better future for builders after eight to nine months from this phase of demonetisation. The primary reason being a huge amount of money lying idle is now reaching banks. This might force the banks to reduce the interest rates as they would be having enough cash. Such boom in realty sector was seen last time when the NDA was in power and interest rates had touched 7.5 percent.
Now it is expected that the demonetisation coupled with the real estate regulatory act (RERA) will work wonder for the builders. These two bold steps taken by the government will not only bring transparency in the market but also give confidence to the banks as well as investors to lend money to the builders. Moreover, when buyers get a home loan at a cheaper rate, they would be encouraged. But all this is likely to happen in 8 to 9 months.
But if you look at the current situation, the biggest problem is being faced by the tenants, especially the students. Although most of them have paid rent of their house in the first week of this month, they are worried about the next month's rent. But there are students who pay rent on 15th of every month. These students could not pay this month’s rent because of the ccash crunch. Many people who live in rented house are complaining that they don’t even have money for meals, how would they pay their monthly house rent? They can only pay when they have adequate cash. And that is how the landlords are also suffering. This is the picture right now.
Demonetisation has given a big blow to the real estate sector, especially the segments where cash transaction is done. But based on the above mentioned discussion, the CREDAI is expecting improvement in the coming days.
The real estate sector in Bhopal has not been sailing smoothly in the recent years. More than 15000 housing units have been waiting for possession. Many among these are ready to move apartments. The possible reasons behind the slump in the property market have been attributed to lack of funds and higher rates of property after government guidelines.
But finally, there seems to be a silver lining. CREDAI is expecting a better future for builders after eight to nine months from this phase of demonetisation. The primary reason being a huge amount of money lying idle is now reaching banks. This might force the banks to reduce the interest rates as they would be having enough cash. Such boom in realty sector was seen last time when the NDA was in power and interest rates had touched 7.5 percent.
Now it is expected that the demonetisation coupled with the real estate regulatory act (RERA) will work wonder for the builders. These two bold steps taken by the government will not only bring transparency in the market but also give confidence to the banks as well as investors to lend money to the builders. Moreover, when buyers get a home loan at a cheaper rate, they would be encouraged. But all this is likely to happen in 8 to 9 months.
But if you look at the current situation, the biggest problem is being faced by the tenants, especially the students. Although most of them have paid rent of their house in the first week of this month, they are worried about the next month's rent. But there are students who pay rent on 15th of every month. These students could not pay this month’s rent because of the ccash crunch. Many people who live in rented house are complaining that they don’t even have money for meals, how would they pay their monthly house rent? They can only pay when they have adequate cash. And that is how the landlords are also suffering. This is the picture right now.
Demonetisation has given a big blow to the real estate sector, especially the segments where cash transaction is done. But based on the above mentioned discussion, the CREDAI is expecting improvement in the coming days.
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