Real estate developers and consultants hope demands to remain not so encouraging due to recovery from financial reforms and upcoming elections.
Delhi/NCR: Housing reforms attracted home buyers which give a boost in real estate recovery and marked almost 50 percent upward progress across major Tier- 1 City on stable rates. But recent economic reforms slow down the delivery rate of units which causing worries across homebuyers.
However, the as foreseen recovery is significant after three major economic reforms in Indian history which constitute a blend of RERA, GST, and Demonetization in the realty sector.
Crises in liquidity of NBFC and upcoming elections will impact sales rate in the first quarter of 2019. As per experts opinion, the sales may surge in the further quarters if the proposal for GST amendment to cut GST rates on under-constructed flats from at present 12% gets the green signal. Liquidity situation is also expected to be improved among NBFCs which have their major investments in real estate thus boosting the overall growth.
The new buzzword in real estate is “Affordable Housing” helping residential segment to recover slightly from its lows in 2017 when this sector hits hard after Demonetization. RERA and GST are also implemented in 2017 in the month of May and July respectively.
As per the latest report of JLL Private limited, ANAROCK and PropTiger housing sales showed an estimated rise in the sales on housing was estimated to rise 47% in seven cities, 16% in seven cities, 25% in nine cities respectively, however on a concessionary price.
The demand for apartments in 2019 remain same due to excessive supply but the demand for “ready to move in” flats would be high on account of low risk and excluded GST.
The enforcement of RERA and GST in 2017 is likely to bring transparency in real estate next year and plunk constraints on the projects of reneging developers like Unitech, Jaypee group etc. The RERA will adjure treachery for upcoming projects in real estate.