What The Future Holds For The Realty Sector?
Several factors have impacted the real estate market in the country in the past one year. The governmental reforms which have been introduced by the Central Government, over the past year, such as the GST, RERA and demonetization have created a stir in the whole sector.
The implementation of the Real Estate Regulation Act (RERA) and consumer activism against project delays have pushed developers to focus on completion of existing projects. This has definitely secured buyers big-time. Additionally, it has also aided the government in fighting against the infusion of black-money in the real-estate sector.
While the sector has largely relied on refinancing to meet its debt servicing obligations, researchers said that the same would increasingly become difficult with the revival in sales unlikely. Experts pointed out that property prices were largely stable pre - November 2016 and down the line, there has been a correction of 2-5% in the secondary market. While developers have resisted price cuts, they continue to offer attractive payment plans.
What does Mumbai, Pune and Bangalore hold for you?
The condition of the market that will prevail in the near future for few of the megacities are mentioned below –
For instance, the city of Mumbai started strong in the initial fiscals of 2016, but after the introduction of the reforms by the government, the market has slowed down drastically. Market activity is likely to remain slow in 2018 as well but the second half of the year could be more active.
Now coming to Pune, localities which are adjacent to the commercial hubs of Pune in the west front of the city were most active throughout 2016. Residential sales will pick up in 2018 and reputed developers may launch more affordable projects after the big slowdown in 2017.
The city of Bangalore has also taken a hit in terms of the real-estate sector. The mid-segment residential projects will most probably remain afloat in both, the primary and secondary realty markets. A certain trend which has been seen in the final fiscal of 2017, will continue in at least 2-3 fiscals of the upcoming year. Developers will probably resist cutting prices but continue to offer subsidized payment plans and price guarantees. If experts are to be heard, then this is the best time to invest in Bangalore realty market as they can negotiate realistic prices in both markets (primary and secondary).
Looking at the current scenario here in Bangalore, realty-analysts suggest that it is a ripe time to invest here in the realty sector. A fantastic residential project which is set to launch in the very near future – Prestige Jindal City Property Apartments will make dreams of masses come true. An affordable housing solution on the Tumkur Road offered by one of the best developers in India. Spread over 30+ Acres, this project will usher excellent supply of fresh air to all the residents.