Real estate is slowing picking up the pace when it comes to sales, after years of slow down. If you have made up your mind and have secured enough finances to pay for the down payment, here’s everything you can expect from the real estate industry this year.
Increase in interest rates
Since demonetization, the banks reduced the rate of interest for home loans. They have been at the rock bottom for a year. This year it can be expected that the interest rates will rise again. This may cause the prices of the flats to jump up.
More or less the prices will remain the same
With lots of new rules and regulations that have come into force, the developers who have defaulted on their payments and promises are under the scan. The banks are hesitant to give out loans for new projects to every another developer. This might be the time when the developers will be hugely relying on the buyers for the funding which will be the reason that the prices will remain the same.
More authority over the real estate
Since RERA has been launched, it has not been able to provide what it initially aimed to. This year it is expected that the government will keep a close eye on the real estate and will be a vigil in delivering justice to the buyers.
Luxury will take a backseat
Since the government is promoting their affordable housing segment in full force, the luxury segment of the real estate will take a back seat. It will be aimed at a particular class of society along with the price tag. There also seems to be the quite an increase in the demand for affordable housing, and you can expect a few more projects to be coming up under the PMAY scheme.
Price correction for the resold properties
The developers are sitting on the massive pile of unsold inventory. To sell them they are coming out with the offers and even giving discounts. In such a scenario, the buyers will choose to buy the
new property over the resold one. Hence, the price corrections for the resold properties are on the horizon.
The proper mode of financing
To save them from the hassle of a mountain of paperwork, non- salaried people preferred to take the loan from non-banking channels. But since these channels are themselves facing a financial crunch, they are gearing up for a lot of paperwork to make sure their money is secured. So if you are planning to take the loan from non-banking channels, the procedure will be similar to the banks.
