The real estate India market has been through several ups and downs in recent times, notably with the introduction of GST and demonetization. The introduction of RERA has also led to an initial stagnation in the market for residential real estate India on account of compliance and other frameworks. However, industry experts feel that the demand for India property should bounce back soon with the advent of RERA.
So, will RERA revive demand for residential property India?
Industry experts expect this festive season to be an improved one for India properties in the residential housing category. The festive last year proved to be dull although things are expected to improve in 2017 on account of RERA, which has ushered in greater transparency for the sector according to experts. More people may be willing to buy property in India due to several factors including the fact that home loan interest rates are at their lowest levels over the last decade and also the fact that close to 70,000 unsold apartments are still available across tier-1 cities in the country. The Pradhan Mantri Awas Yojana and incentives for affordable housing may also spark demand in the housing sector.
As per reports, several developers are also coming up with attractive schemes for buyers and buyer confidence is steadily growing up with more rationally priced projects being covered by RERA, which are currently under construction. According to industry experts, the end of August heralds the commencement of the festive season in the country. These sentiments make several Indians purchase real estate, jewellery and automobiles among others. Developers also plan for this period well in advance with a desire to tap into this positive market sentiment.
On that count, the implementation of RERA may work as a shot in the arm for property in India this festive season. Developers are now rushing to complete projects, which are being constructed and are also looking to sell piled-up inventory at the earliest before launching any new projects. Ready-to-move apartments that have occupation certificates are out of the GST and RERA purview, making it easier for developers to advertise and market these homes. Buyers can choose from a wide range of ready-to-move-in homes and experts estimate close to 75,000 homes in this category across tier-1 cities.
Studies also suggest that the number of units launched between 2015 and 2016 have reduced by a whopping 59%. However, RERA has ushered in more transparency and accountability and promises to safeguard buyer interests, something that should revive residential housing demand this festive season. According to SquareYards, mid-range buyers make up the largest section of the market and they are the ones who are steadily gaining confidence due to RERA and its provisions for safeguarding buyers from irrational rates, delays in project completion and other aspects.
More developers are expected to come up with new and more lucrative home buying schemes in order to clear unsold stocks this festive season. This should certainly put Indian real estate firmly in revival mode.
One of the top real estate investment advisory solutions both countrywide and globally, SquareYards has a comprehensive property and asset lineup from leading developers and caters to investor interests in both residential and commercial property segments. SquareYards has already facilitated investments crossing $1 billion worldwide over the last couple of years.