The market needs some more time to absorb the Real Estate (Development and Regulation) Act, 2016 (RERA) as still there are states and UTs those have not notified their respective real estate Act. States will have to carry out the regulations followed by the establishment of respective state RERA Authorities. RERA aims at organizing the real estate sector with the better transparency in operatives.
2018 market looks quite promising as RERA has already set the stage in the favour of the homebuyers in most of the states. Rolling out of RERA indicates approx 45% residential investment in the first half of 2018. With the steady confidence boost by RERA market sentiment is on its recovery path. The market is about to witness steady-going sale volume in the recent future.
“The successful implementation of RERA will reinstate the trust of the buyers at large. With the assurance of timely project deliverance along with the quality check RERA will significantly boost the demand of the real estate sector very soon,”- said, Mahesh Somani, Chairman- National RERA Committee, Head- East Zone, National Association of Realtors India (NAR).
Since RERA is the legal protector of the consumers in their real estate purchase, buyers will now have quality real estate products delivered on time. Currently, developers are offering attractive pay packages and discounts to steer clear their inventories. Again, investing in the ready-to-move project is favourable from the buyers’ standpoint as it is exempted from the GST (Goods and Service Tax) regime. Once, the consumer sentiment gets consolidated there will be no gridlock in new project launches. A balanced demand-supply proportion is likely to fuse the oversupply volume as well.
From May 1, 2017, the Act has been brought into action by the central government. It was the time when the market was undergoing the demonetization overhung. Thus, implementation of RERA made the realty sale graph even tender.Whilst no policy change or structural reform barely create any dent in the uninterrupted demand-supply chain of the affordable housing segment. During this massive slowdown, affordable housing sector contributed 17% of the total sale across the major cities of the country. It’s worthwhile mentioning, being the most incentivized sector affordable housing sector is expected to return a voluminous profit by the end of 2025. Buyers are in demand for budget housing ranged within Rs. 50 lacs at large. Alongside the inflation rates appear to have neutralized and lending rates have started declining as well.The availability of budget housing units and a sharp price correction in HIG segment opens a brighter market prospect for the buyers willing to purchase with self-finance.
–LNN (Liyans News Network) – Significant price correction in prime area residential projects. Invest in luxury residential property in north Kolkata. Price has reduced by 12-17%. Explore available flats/bungalows/penthouses online. Buy/Sell/Rent properties online across 100+ cities in India.