GST

Homebuyers make a resurgence thanks to lower interest rates and reforms

The repressed interest for housing is presently getting converted into real sales. While industry specialists have been naming the situation as buyers’ market for quite a while, homebuyers themselves appear to have turned out to be more active at this point.

Things are looking positive as indicated by the performance some of the listed real estate companies with regards to residential sales over the last one year.

A key role in this resurgence is played by lower interest in home loans and government’s encouragements on affordable housing. The government, to support affordable housing fund, has introduced a number of schemes such as Pradhan Mantri Awas Yojana (PMAY), Lower Goods and Services Tax (GST) and extended income tax benefits to apartments of carpet area of 645 sq ft.

HDFC Bank has recently reported a 26% increase in individual loans in FY18. Godrej Properties reported a 152% on-year increase (at Rs. 5,083 crores) in the value of bookings for FY18. The organization’s most noteworthy ever sales in any budgetary year was led by booking volume of 6.26 million sq ft.

Amid the final quarter alone, the organization’s booking value saw 210% on-year development at Rs 1,054 crore. The executive chairman of Godrej Properties, Mr Pirojsha Godrej said, “For the first time in its history, GPL has delivered sales of more than Rs 1,000 crore for four consecutive quarters. We look forward to building on this momentum in FY19”.

The final quarter and the full financial year swung out to the best-ever in value terms for Bengaluru-headquartered Sobha, with an increase across regions and product categories. It has recorded new sales volume of 3.63 million sq ft, evaluated at around Rs 2,861 crore amid the year with yearly sales volume and values increased 21% and 42%, respectively. The performance of Kochi and Gurugram also saw an improvement.

Indiabulls Real Estate, a Mumbai-headquartered real estate developer saw a 20% growth in both 600 apartments and sales value at Rs 3000 crore. Strangely, the premium segment also contributed to the organization’s performance during the year.

May 8, 2018 / by / in , , , , ,
Will 2018 see a rise in the Real Estate Market?

In 2017, the performance of the real estate market was insipid as compared to the past 4-5 years. During the past decade, Real Estate was one of the top choices for investors to invest their money in. But due to demonetization in India, the real estate sector has been affected hard and has seen a dip in sales. In 2017, the industry saw approximately 50% dip in sales as compared to 2016.

But to cheer up investors and homebuyers here is some good news: Real Estate industry will be back on track in 2018 as predicted by the experts. The reasons for this are:

Real Estate regulatory law:

The Central Government announced a Real Estate regulatory law last year, stating that a limited one- year extension on the completion deadline under the Act was compulsory rather than optional. This law will force the builders to deliver the projects on time and the delay in the delivery of the projects will end. Therefore, the homebuyers can rest assured that the projects will be delivered on time as promised by the developer.

Buyers can get loans at cheaper rates:

The government of India declared that people with an annual income of up to Rs. 18 Lacs will be eligible for loans at a lower rate to build or buy a house of up to 1500 sq ft; the restriction which was previously limited to 1100 sq ft. And those with an annual income of up to Rs. 12 Lacs can buy or build a home of 1200 sq. Ft; which was previously restricted to 900 sq ft.

Improvement in Infrastructure of Delhi – NCR

With the development of many metro stations and corporate offices, especially in Noida, a lot of potential investors are looking forward to investing in property in Delhi – NCR as it is predicted to provide great returns on their investment in the near future.

With these factors into consideration, many experts claim that the real estate industry will be back on track in 2018 and it will be a good time to invest in property.

December 28, 2017 / by / in , , , , , , , ,