The real estate sector, which was earlier a free sector where developers easily flouted rules will, now be under the radar of the Regulatory Authority. After years of waiting, finally there is a ray of hope for helpless home-buyers in the country in the form of RERA (Real Estate Regulation and Development Act), which became effective May 1, 2017.
The recent move of demonetization by the government will ensure a secure and favourable financial future for every citizen or our country. However, Mayfair Housing believes that the prices of real estate projects which are RERA compliant will remain stable.
In fact, prices of ready to move in homes might even rise by 10%.
Many factors are responsible for this situation and we’ll list them one by one which will help you take a better decision.
This will help the government to invest hugely in Infrastructure development and will lead to fast development and sustainable economic prosperity in Mumbai and MMR areas. The Seven Metro Corridors, Coastal Road, East-West Connectivity, North-South Connectivity, Mumbai Trans Harbour Link, etc.
will further boost demand in the Real Estate sector in Mumbai. Political stability at the centre and in the state will also lead to a favourable Investment Climate in Mumbai and Maharashtra.
A good monsoon has also helped revive the economy. FDI has increased exponentially which has provided the government with additional resources, and will be used to improve infrastructure further.
Demonetisation will help to stabilize inflation and will encourage the RBI to reduce REPO rates. Due to these factors, Home Loans rates are expected to come down to 7% in the coming future.
The SBI has already announced FD rates at 4.25% to 4.75%. This will lead to a substantial rise in demand for real estate.
The Housing Rent to EMI ratio will also substantially, spurring further demand for real estate as people will consider buying a home instead of living on rent. Tax breaks are expected to be announced for flat buyers as the government wants housing for all.
The proposed DCR DP 2034 and the TDR policy will lead to rise in cost of development by at least 10% of all future projects. Hence, they will be more expensive than the current ones.
Due to the implementation of GST, Ready to move in flats will get expensive by at least 9% to 22%. Hence all projects that are ready on or before the 31st of March, 2017 have a significant advantage as no GST would apply on these projects.
Increased buying capacity and high liquidity in the realty sector will make ready to move in projects the first choice for buyers. Ready to move in projects are almost 0.5% of the total real estate projects that are being offered today.
Consumer sentiment is likely to change very soon and I anticipate it to happen around 14th January, 2017.
Today, real estate prices are at par or below cost. All overhead costs of developers are being met through loans.
Now, there is no scope of any further fall in real estate prices. Consumer sentiment is expected to change soon as it would become clear that they will need to pay a higher price due to the impact of GST and other various reasons.
Hence, once the stock of ready to move in flats get exhausted, they will have no choice but to buy flats which are under construction or wait for the under construction project to get completed. Hence, the demand for ready to move in flats is likely to rise.
Therefore the right time to buy a house is NOW.
Category: Real EstateCompany profile: Mayfair Housing has long been the center of Mumbai's prime real estate market holding the prestigious title of the best property developers in Mumbai. We are considered as a pioneer in the real estate segments for our path-breaking construction projects in the choicest of locations across Mumbai. Over the years because of our extensive experience, we've been able to design & build residential, commercial & corporate projects of international repute in India. Our aim is to provide high va ...
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