Although Real Estate Market in India is Improving, Industry Status Required

By : 360 Realtors

18 June, 2018

2018 is going to be the year of revival of the Indian real estate, feel experts. The growth of the sector had been slow in the last few years. Particularly, since 2016, the economic policies implemented by the government had slowed down the pace of growth of the reality sector in India to a certain extent. The inception of RERA, implementation of GST and other measures had retarded the growth of the real estate sector to a large extent. However, these economic measures ensured more transparency in the industry, which encouraged the homeowners to buy the properties.

According to business stakeholders, the government should give an industry status to the real estate sector. This will give a boost to the Realty Market and it will further expand. The move is likely to reduce the cost of funds for the developers, which will correspondingly cut the property costs for consumers. People will be able to buy homes at cheaper prices. Presently, the unsold properties are slowly finding customers, but the process should grow faster. The number of units sold in the country has undergone a reduction. Previously, the figure was more than 6,00,000, which has come down to around 4,50,000. The growth of real estate In India is visible, but the government needs to take necessary measures to pacify this growth. Experts are of the opinion that giving the industry status to real estate will increase the sales of home. In the next one year, the number of sales of residential units is likely to increase.

Reports in different markets, such as Bengaluru, Delhi and Mumbai reveal that an increment in sales has taken place in recent years. This is around 30%, considering the sales that have taken place between 2016 and 2017. The demand for Best Real Estate in India is increasing and the homeowners from various parts of the country are interested in buying quality homes. The developers are also coming up with sophisticated apartments for these buyers. Evidently, the government needs to take adequate measures, that will help in increasing the sales of these properties. In certain areas, the queries for buying homes have increased by 45% to 50%.

While speaking about the increasing demand for real estate in India, the stakeholders stated that the trend is undergoing a gradual change from buying by the investors to the end users. The homeowners themselves are buying the properties in recent years. Previously, the investors used to buy around 50% to 60% of the homes. Presently, this figure has come down to around 8% to 10%. The difference between EMI and rent while in certain areas is only 15% to 20%. Besides, the credit-linked subsidy system has come into play. The trend of Home buying has undergone change in recent years. The purchase depends on the tenure of the loan, prices of the property, other criteria of the scheme and so on. According to experts, the implementation of RERA and other reforms have created a positive effect on the real estate economy and the sector is likely to witness an increment in sales in the years to come.