Real Estate Market will Experience more Transparency in 2017
May 19, 2017 Real Estate News
The real estate market has suffered badly since demonetization almost two months back. The slowdown in sales has been reported throughout the country. The major reason behind it was the ban on the higher denomination currency notes (Rs 500 and Rs 1000). Since the cash involvement is higher in the secondary sector than the primary sector, the sales have suffered. According to experts, it will take a couple of months more for the sales in the real estate sector to revive.
With the government’s move on benami property, implementation of Real Estate Regulation and Development Act (RERA), and the reduced interest rates by the banks, it is expected that the market will become more transparent and will attract more buyers, hence improving the current slowdown in the sales.
The interest of buyers has been exploited for years by the developers and the implementation of RERA will mean that there will a government body which will make sure that the projects will be completed on time and the promised amenities are provided along with the good construction quality. The stricter compliance will work in the interest of the buyers.
RERA will be implemented across the country from 1st May 2017. It is expected that the first half will be same as the buyers are going to wait for further price corrections and reduced interest rates, but the second half looks promising.
Some home buyers have put on hold their thought of buying the property until the confusion from the demonetization stabilises. In the long run, demonetization will only help the real estate sector to organise the developers and bring out the genuine buyers. Most buyers would channel their black money through real estate. This move will put a stop to such practices. More affordable housing will come into the light and will help the government achieve the goal of providing a house for everyone by 2022.
There is a lot of inventory stacked up for the developers and to sell them off, they are taking the advantage of such times. Developers are coming up with offers like ‘book now, pay three months later’ schemes or offering discounts and home loans at 6 percent to 7 percent. This has led to the rise in buying and selling of the ready to move in properties and the projects which are near the completion.
Although, these might just be enough to stabilise the market and lure in more buyers but in long run, consistent measure needs to be taken strictly with any slack for the real estate market to stay flourishing.
With the government’s move on benami property, implementation of Real Estate Regulation and Development Act (RERA), and the reduced interest rates by the banks, it is expected that the market will become more transparent and will attract more buyers, hence improving the current slowdown in the sales.
The interest of buyers has been exploited for years by the developers and the implementation of RERA will mean that there will a government body which will make sure that the projects will be completed on time and the promised amenities are provided along with the good construction quality. The stricter compliance will work in the interest of the buyers.
RERA will be implemented across the country from 1st May 2017. It is expected that the first half will be same as the buyers are going to wait for further price corrections and reduced interest rates, but the second half looks promising.
Some home buyers have put on hold their thought of buying the property until the confusion from the demonetization stabilises. In the long run, demonetization will only help the real estate sector to organise the developers and bring out the genuine buyers. Most buyers would channel their black money through real estate. This move will put a stop to such practices. More affordable housing will come into the light and will help the government achieve the goal of providing a house for everyone by 2022.
There is a lot of inventory stacked up for the developers and to sell them off, they are taking the advantage of such times. Developers are coming up with offers like ‘book now, pay three months later’ schemes or offering discounts and home loans at 6 percent to 7 percent. This has led to the rise in buying and selling of the ready to move in properties and the projects which are near the completion.
Although, these might just be enough to stabilise the market and lure in more buyers but in long run, consistent measure needs to be taken strictly with any slack for the real estate market to stay flourishing.
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