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The real estate industry in India had undergone a revolutionary change in 2017. Several regulatory measures have been implemented by the government in order to ensure more transparency in the industry. As a result, the growth of the real estate sector had slowed down to a certain extent. Particularly, the effects of demonetization, GST and the implementation of RERA regulations had slowed down the growth rate of the industry to a great extent. However, surveys have revealed that this impact of economic policies on the real estate sector is almost over, and the industry is on the path of recovery. Well, several indications show that the health of the real estate sector is recovering. The sales figures are improving in most of the big cities. The prices of these properties are also becoming normal. The sales of property in India in the year 2018 are likely to surge, overcoming the dip that it had suffered in 2017.
As a result of the regulatory measures, the prices of properties had either remained flat or suffered a dip in 2017. In a few markets, the overall sales figures showed promising changes. The real estate economy is coming out of this crisis. In cities like Pune, Bengaluru and Mumbai, the prices are getting back on tracks. In Kolkata and Hyderabad, the rental rates have increased by 4% during October to December 2017. In 2016, Mumbai and Bengaluru witnessed an increment in the same area by 3%.
According to the reports, markets in Mumbai and Delhi NCR are inventory-heavy. Corrections in property prices have been witnessed in certain areas like Navi Mumbai, Noida and Gurgaon.
The report further stated that the inventory-heavy markets of Delhi NCR and Mumbai witnessed corrections in some popular housing pockets of Gurgaon, Noida and Navi Mumbai. The demand for luxury properties is also increasing in these areas. After the RERA came up with its full set of regulations, the homeowners have got back their confidence in the industry. They were waiting for the complete regulations to come into play. Now, with the RERA fully operational, the homeowners are ready to make their move. RERA has been successful in restoring the confidence of the buyers in the real estate industry. It has been working for the interest of the homeowners, keeping an eye on the corrupt developers. The demand for premium properties in markets like Pune and Bengaluru has revived, following the implementation of RERA. The effects of demonetisation are almost over and the industry is likely to witness a boom in the coming months.
According to the reports, the prices of luxury and ultra-luxury properties are likely to drop in 2018. The key reason behind this dip is the low demand for these projects. However, other segments of the industry are unlikely to undergo any correction in price between January to March 2018.
Experts reveal that after the implementation of GST, the market had shown signs of slowing down, but it is now back on the tracks. They believe that the levels of fresh inventories may rise due to the implementation of the economic policies and increased regulations.
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