The flow of Government reforms like RERA, GST, and demonetisation, has severely disrupted the country’s Real Estate market. Till date, the volume of sales, as well as new project launches, are on a low. But an uptick was observed in the sales rate as a whole, in the recent months, mostly contributed by the sale of ready-to-move-in projects. The luxury segment market seems to have improved, especially in the case of selected projects by well-known developers, offering ready-possession options to the buyer.
According to the Chairman of a Real Estate Consultancy, the market will take quite some time to regain its usual flow. With buyers’ increasing interest in projects that are towards the stage of completion or ready-to-move-in units, developers became cautious in their approach. They began to focus on selling off their ready-to-move-in projects instead of launching new ones.
The post-RERA period appears to be tough for the Real Estate market but ultimately it is on the gaining side and that is evident from the initiation of transparency in the industry. At present, payments for all types of property purchases are being accepted either legally online or through cheques. Transactions involving cash or cash component, are subject to questions from the authorities.
In the opinion of the consultancy, the average prices of property in rupees per square foot of area have remained the same in the major cities of the country. A slight change in prices has been witnessed by cities, namely, NCR, Chennai and Mumbai Metropolitan Region. Kolkata, Bengaluru, Hyderabad, and Pune also saw a slanting rise in the property prices.
Developers are maintaining competitive prices to clear off the huge unsold inventory as well as complete the projects that are under construction.
With the demonetisation in the fourth quarter of 2016, the number of sales and new launches fell by around 32 and 60 percent, respectively, in comparison to the third quarter of that year. On the contrary, a reduction of about 6% in the number of unsold properties conclude that the developers are concentrating more on offloading their existing projects than launching new ones.
Hard discounts are being offered by many developers while the capital-rich ones with projects in popular locations are waiting for the market demand and prices to grow.
The present situation of the realty market with incredibly low home loan rates ever in the last ten years is certainly a benefit from the consumer’s viewpoint. Besides, developers are offering attractive payment plans and rates for drawing potential customers. According to the experts, a firm recovery is soon expected in the residential market, both primary and secondary.
Hope, this reading was helpful. Whether you are renting, selling or purchasing a property, Transventor Property Management Services Pvt Ltd is there to make it an enriching experience for you. We make it a point to keep you updated with what is going on in the industry.