Register for features like favorites, compare, comprehensive advice, consultation and more.Register
Approval of 7th Pay Commission by the Union Cabinet this Wednesday brings joy and hope to the real estate sector triggering home sales. The government's decision to increase salaries, perks and pensions of both current as well as the former government (govt.) employees is expected to increase urban spend as many of them will start earning better, thereby strengthening their purchasing power. And as per the apex real estate bodies, India's real estate sector is going to be the major beneficiary of this bill. So, this pay hike for govt. employees and pensioners raises positive vibrations in the sector.
This is a good decision, and it will benefit economy of the nation from consumer spending. Real estate has always been favorite asset of govt. staff. The increase in purchasing power of the employees working in the government offices is going to take urban demand, particularly in the area of property sale and purchase, by storm.
At present where real estate prices are at low compared to gold prices which are high and stock market is up, it is quite obvious that investment will come in to the realty sector. These way transactions will increase and flush in more liquidity in the property market with enhanced home buying capacity of govt. officials.
With increasing income, the core govt. staff will look into property market to invest part of their increased salary. Amongst the beneficiaries of the hike, about 58 lakh central govt. civil pensioners when come looking for property, the demand for retirement homes in the country are going to see surge.
Recent survey report also reveals that the pay scale of government staff is relatively higher than their counter parts in the private sectors. As such, this gives a boost to the market which has suffered slump in the past couple of years. Although this pay hike is lower than the previous 6th pay commission yet it stimulates good vibes in the various sectors of the market.
Apart from this improvisation in the model law to keep the malls, shops and cinema halls open for 24/7 will push consumption. This will not only help generate more employments, but increase overall urban spend which will benefit the employers, amongst others indirectly contributing to the economic turnover of the country. Market analysts expect that this consumption boost will ensure growth and development of the Indian cities as Smart Cities.
It is a positive move and will give citizens liberty to shop at any anytime. Increased sales in shopping malls would push growth across the sectors basically in e-commerce, retail and entire services industry together with the daily management of the developments. Implementation of the 7th pay commission and approval to the model law will improve work culture and environment conducive to sustainable economic growth.
Once these are implemented by the states, this will benefit off-line retailers as the Act brings them on equal platform with the on-line retailers, thus intensifying competition between the two. This will enhance the performance of the virtual and physical players as well as benefit the consumers & workforce at large level.
As a result of this, there will be increase in new launch projects, inventory reduction and enhanced business performance and improved state's per capita income, thus ensuring better standard of living in the area. Therefore, the Act nurture future society boosting the economy as well as real estate development nationwide. In a nutshell, the Act fulfills dreams of hundreds and thousands of people aspiring for buying premium or making gainful investment in the booming micro markets of the country.
Stay updated with everything real estate!
Subscribe to our news letter