Residential Real Estate In India Set Back To Restore 2019 - 2020

Residential Real Estate In India Set Back To Restore 2019 - 2020

Let's look at the present state of the real estate market so that you can get the best deal for owning an apartment or flat in India. As we know, the real estate market has witnessed a market decline or downfall in the number of people buying residential properties. One of the major cause for this fact that the property prices remain high when it compared to the average income of people. The concept of affordability also affected by an increase in income and interest rates. The rental yield is another factor that determines the level of demand for both investors and end users. Rental yield is the amount of rent paid per annum over the cost of purchasing a property. 

The demand for real estate started declining from the year 2013. By 2016, it hit an all-time low; the entire market was going through a bearish stage when it was affected by two main black swan events. That is the introduction of RERA in 2016 and then demonetization of Government that demonetized high-value currencies, which in turn washed out 2016 and 2017 for residential real estate.  However, the impact of these is only short term and it will not have a long-term impact. I.e., it is true that the residential demand, sales and supply took a hit on the back of uncertainties surrounding RERA and GST. Though, with the improving clarity on GST & RERA, sales are expected to revive across categories and budget segments.

Key Reforms In Real Estate Will Lift The Demand

Now the change is already visible by the implementation of Government flagship mission “Housing for All by 2022” and its focus on the affordable housing segment. Moreover, the effective implementation of RERA restores confidence among homebuyers and the real estate sector is set to greatly benefit from RERA.   Now the Residential real estate in India is set to make a comeback. Demonetisation had a healthful impact on property costs by restricting money transactions and checking speculative evaluation, successively increasing affordability, that may be a key to realize the government's flagship mission of 'Housing for All'. The government has also stretched the credit linked subsidy scheme till March 2020, which offers interest subsidies on home loans for Low Income Group (LIG), Middle Income Group (MIG) and Economically Weaker Section (EWS) under the Pradhan Mantri Awas Yojana.

So it is clear that the real estate sector is showing signs of recovery and is in reforming stage where Government put its focus on providing affordable housing, consumer-friendly regulatory reforms and infrastructure to warehousing industry providing a sense of positive market sentiment. RERA and GST are now the prime factors that facilitate a recovery in the real estate sector. Recent evaluations after the implementation of RERA and GST indicate a 6 percent growth in housing sales across some of the major cities in 2018. The growth outlook across both commercial and residential real estate is turning progressive now. Based on estimates, by 2030, the real estate in India become a $1 trillion market.

Hence the mess is over, buyers can come across to purchase their dream property without any second thought. Now they need to worry about the only thing that the selection of the best and trusted builder, finding the proper location & amenities while purchasing a ready to occupy or under construction 3 BHK or 2 BHK apartment or villa.  Here you can stop your concerns about the selection of the right builder; you can undoubtedly contact Varma Homes, the top builder in Kerala. We have completed and ongoing residential projects in the three major districts of Kerala like Kochi, Trivandrum and Thrissur. Head off, to purchase your dream apartment with the most trustworthy real estate builder like Varma Homes. Find your dream home with us, great experiences are just around the corner!!!

 Also, read Importance of using RERA website before buying property.docx

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