Housing Sector sees Sunny Days as Demonetization and Policy Clouds Clear
The sudden announcement of demonetization shook the Indian finance and
the real estate sector. But now the launch of new policies helped the citizens
and the real estate developers to overcome the issues.
The Hard Impingement
The Note ban is like a speed breaker in the real estate sector. In the bird's eye view, the sector was
working very slowly. Though the developers were negotiating with requirements
and price, the end users were not attracted since they were also tied up in the
financial crisis. When compared to other cities the IT hub faced minimal
issues. The government's move is to eradicate black money, that really hit hard
on the landowners, money launderers, and corporate builders. where the chance
of stocking is more. With this demonetization drive, there has been a great
move to suck the unaccounted cash from the economy.
The Fortuitous home buyers
Like the two sides of a coin, the irrevocable change on the evening of
8th November had a negative impact on the real estate developers but the home
buyers got the ball on their Court. People started searching for a viable
investment property due to the reduction in interest rates and EMIs. With the
concept of demonetization, a huge number of people were known of the banking
schemes and transactions. Common man like farmers, drivers, housemaids etc..
had the chance of coming in connection with the banking sector and eventually
they had the opportunity of buying home with bank loans. The transparency in
the real estate policies showed a remarkable rise in genuine buyers.
Post demonetization term
After the no parking sign in parking the black money in Real Estate
region, many reformations took place. There was about a 37% decline in property
registrations indeed of the price reduction of 20-30%. Less impact was
witnessed in the primary sales segment which was driven only by the common man.
The large impact was on the resale market since the involvement of cash is
always on a greater scale here. After a quarter year, it became a Win-Win
situation for the developers and buyers due to the introduction of new
government policies, that helps to employ transparency in buying.
Hit it Big
The Goods and Services Tax (GST) and the Real Estate Regulatory Act (RERA)
helped to overcome the Chaos in the situation. The purchase of the property is
been taken place in a transparent cheque or online gateway payment which is one
of the significant reformations the country has faced in the real estate
sector. These twin policies help all kinds of people to live their dream, since
the purchase of property can be made from home loans. Real estate (Regulation
and Development) Act helped to change the working manner of the real estate
sector. It helps to bring great accountability to the housing sector. Delivery
of residential was never compromised and many Technologies like MIVAN is used
to ensure the speedy construction work. To impose ironclad rules and penalties
with the motive of removing the 'benami' transactions Amendment to the Benami
Transactions Act was introduced. The union budget 2016-2017 released the scheme
of interest subsidy for first time home buyers. Godrej Alive Mulund Thane is one such upcoming project where one can invest into it for more ROI.
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| Godrej Alive |
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