Increase in the Cost Remain Moderate in the Last Five Quarters
Jan 10, 2019 Real Estate News
According to the report issued by the Reserve Bank of India, the prices in the real estate market has seen a moderate rise in the last five quarters. Though the sales have picked up the pace, the prices still are the same. Since the first quarter of the financial year 2015, the all India housing price index dropped to 5.3 percent from 16 percent in the second quarter of the current fiscal year.
Even though the sales are not as expected it would be since the introduction of RERA and GST; the developers are stocked up with unsold inventory. This is one of the primary reasons that the prices have not seen a jump but a moderate rise. However, there was a pick up in the sales of unsold inventory in the first quarter of the current financial year, the reduced interest rates boosting the sales. This helped in improving the house sales to inventory ratio in the major cities.
Since the introduction of RERA and GST, there has been some confusion among both the buyers and the seller regarding the tax implications. But the government has made efforts to ease the issues that have been arising for the buying and selling of properties. This has helped in an increase of the sales considerably.
According to the Central Bank of India, the confusion among the buyers and sellers and their resolution have helped in improving the sales thereby bring real estate industry back on the track.
The government has been promoting and pushing the affordable housing segment. The Pradhan Mantri Awas Yojana is one ambitious project that hopes to provide housing for all by March 2020. The government has been pushing the project by giving tax relaxations and subsidies to the buyers. This has definitely helped in increasing the sales in the real estate sector.
Continuing with the trend, it is expected that this year will see the rise in the real estate industry when it comes to buying and selling. The prices are expected to remain moderate, and sudden hike in the prices are not expected. The developers are keen to sell out their unsold inventory before they launch new projects.
There have been projects that are launched under the affordable housing segment that has been pleasing the mass. The project aims to use sustainable and environmentally friendly products for the construction of the buildings.
Even though the sales are not as expected it would be since the introduction of RERA and GST; the developers are stocked up with unsold inventory. This is one of the primary reasons that the prices have not seen a jump but a moderate rise. However, there was a pick up in the sales of unsold inventory in the first quarter of the current financial year, the reduced interest rates boosting the sales. This helped in improving the house sales to inventory ratio in the major cities.
Since the introduction of RERA and GST, there has been some confusion among both the buyers and the seller regarding the tax implications. But the government has made efforts to ease the issues that have been arising for the buying and selling of properties. This has helped in an increase of the sales considerably.
According to the Central Bank of India, the confusion among the buyers and sellers and their resolution have helped in improving the sales thereby bring real estate industry back on the track.
The government has been promoting and pushing the affordable housing segment. The Pradhan Mantri Awas Yojana is one ambitious project that hopes to provide housing for all by March 2020. The government has been pushing the project by giving tax relaxations and subsidies to the buyers. This has definitely helped in increasing the sales in the real estate sector.
Continuing with the trend, it is expected that this year will see the rise in the real estate industry when it comes to buying and selling. The prices are expected to remain moderate, and sudden hike in the prices are not expected. The developers are keen to sell out their unsold inventory before they launch new projects.
There have been projects that are launched under the affordable housing segment that has been pleasing the mass. The project aims to use sustainable and environmentally friendly products for the construction of the buildings.
