Indian Real Estate Suffering From Poor Buyer Sentiment
Nov 09, 2019 Real Estate News
The Indian real estate market has been suffering from slow sales for a while now. The prices of the properties have reached a reasonable limit where it is more affordable for the potential buyer to get into the real estate of the country. The prices have remained unchanged in the key markets of the country for the buyers who have been on the fence watching the market and finding the right time to invest in the property, this may the right time as the loan lenders are offering lower interest rates thanks to the repo rate reduction by the Reserve Bank of India.
The government has been making efforts to boost the sales in the real estate sector of the country. from increasing the tax limit to reducing the repo rates, no stone is being left unturned. The current repo rate is lowest it has been in the last 10 years with the rate being at 5.15 percent. The RBI has urged the banks and the financial institutes to reduce their home loan interest rates. Operating on the orders of the RBI, private and public-sector banks have introduced repo rate linked interest rates. This works to make sure that the loan borrower can get the benefits of the loan quickly as compared to the MCLR rate. The home loan rates now start from 8.1 percent but if your creditworthiness is good then you might be able to grab the home loan at 7.90 percent.
If the buyer is interested in investing in the affordable property, then the cost will reduce efficiently as the affordable segment starts from Rs 45 lacs per unit. The tax deduction has been increased in this year’s budget from Rs 2 lacs to Rs 3.5 lacs.
Lack of interest from the buyers
From the bad experience with the developers in the past to the current cases of developer giants like Amrapali group, Jaypee, etc., the buyer sentiment is not much towards investing in the real estate but towards mutual funds and other investment sectors.
Make the most of the situation
The real estate sector can be reeling with slow sales but a potential buyer can make the situation in their favour. With the unsold units sitting with the developers, they are in a hurry to sell them off. The developers are now more open to negotiations which weren’t the case before.
Stringent laws are in place to make sure that your money and investment are safe and the developer cannot bail out mid-way. RERA has laid out its laws in almost every state and is fully operational, giving a huge relief to the buyers.
It is advised by the experts that the buyer makes sure about the developer and the project before investing to save themselves from any loss in the future.
The government has been making efforts to boost the sales in the real estate sector of the country. from increasing the tax limit to reducing the repo rates, no stone is being left unturned. The current repo rate is lowest it has been in the last 10 years with the rate being at 5.15 percent. The RBI has urged the banks and the financial institutes to reduce their home loan interest rates. Operating on the orders of the RBI, private and public-sector banks have introduced repo rate linked interest rates. This works to make sure that the loan borrower can get the benefits of the loan quickly as compared to the MCLR rate. The home loan rates now start from 8.1 percent but if your creditworthiness is good then you might be able to grab the home loan at 7.90 percent.
If the buyer is interested in investing in the affordable property, then the cost will reduce efficiently as the affordable segment starts from Rs 45 lacs per unit. The tax deduction has been increased in this year’s budget from Rs 2 lacs to Rs 3.5 lacs.
Lack of interest from the buyers
From the bad experience with the developers in the past to the current cases of developer giants like Amrapali group, Jaypee, etc., the buyer sentiment is not much towards investing in the real estate but towards mutual funds and other investment sectors.
Make the most of the situation
The real estate sector can be reeling with slow sales but a potential buyer can make the situation in their favour. With the unsold units sitting with the developers, they are in a hurry to sell them off. The developers are now more open to negotiations which weren’t the case before.
Stringent laws are in place to make sure that your money and investment are safe and the developer cannot bail out mid-way. RERA has laid out its laws in almost every state and is fully operational, giving a huge relief to the buyers.
It is advised by the experts that the buyer makes sure about the developer and the project before investing to save themselves from any loss in the future.
