Once upon a time, real estate was the biggest crowd-puller among the circle of investors in India. Recent times have seen a decline in this real estate bestseller, caused by a state of lethargy or fall in property rates.
In accordance with the elapsed three-four years, the show put up by real estate in 2017 has been below average, as far as prices upsurge and sales are concerned. In addition to this, the realty sector has also been regarded as a roof on the head for black money. However, reforms like the Regulation and Development Act (RERA), Goods and Services Tax (GST) and Demonetization introduced and implemented by the Government to tighten the screws on black money has bumped hard against the realty sector.
In a few of the property bazaars, sales are still trying hard to get back the normalcy to the likes of the period before demonetization. 2017 witnessed 1.6 lakh units that were sold in the Q1-Q3 2017, as stated by Anarock research. The fall of sale was found to be around 30% as against Q1-Q3 2016. In addition to this, even the number of new projects that came up was limited. Not more than 94,000 units came up in 7 prime cities of India between Q1-Q3 2017, signifying a decline of more than 50%, in comparison to that of the same quarter in 2016.
Nevertheless, as per experts, real estate market is experiencing an array of transitions. It is expected that the situation will improve with the passage of time, and reforms will fill in the gaps and smoothen the rough edges of the sector thereby making it more consumer-friendly.
The big milestone of 2017 was the Government communicating to homebuyers that they will cease to be at the receiving end of builders and developers, by rolling out policies that safeguard the buyer rights as well as boost the demand of homes. Although this is accompanied by some evidently visible starting problems in the way of introducing and enforcing new policies and reforms.
Budget homes are going to strike it big in 2018 with the support given by the government. Even the homes within the bracket of middle income have been positioned to pull in more buyers and in return, give developers the opportunity to do away with their budget homes inventory.
Experts opine that even though no price hike is expected in 2018, contemporary reforms will elevate the confidence of home buyers and sales will in all probability hit a high in 2018. It is also believed that the realty market will exhibit good buying options in 2018, amidst the ready stock as RERA pushes for completion of existing projects.
It won’t be fair to expect a blazing recovery for the home property bazaar in 2018, however, one can be positive that revival and growth will be consistent and fueled by more robust market basics than before. The period of high risks and deep declines can be regarded as a thing of the past.