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 , , , , ,
To enhance the coverage, government revises housing schemes under PMAY

To enhance the coverage, the guidelines of the housing scheme for urban areas under the Pradhan Mantri Awas Yojana have been revised by the HUA (Housing and Urban Affairs) Ministry.

According to the revised guidelines, areas covered under the notified planning or development area under the jurisdiction of a special area development authority or urban development authority or industrial development authority or any such body under state legislation which is assigned with the tasks of planning and regulations shall also be encompassed for coverage under PMAY (U).

The housing scheme is being implemented by rural development ministry in rural areas under Pradhan Mantri Awas Yojana (Gramin) and by HUA ministry in urban areas under Pradhan Mantri Awas Yojana (Urban).
The rural development ministry is implementing the housing scheme in rural areas under PMAY (Gramin); while in urban areas, the housing scheme is being implemented by Housing and Urban Affairs (HUA) ministry under PMAY (Urban).

“The beneficiaries in the permanent wait list of PMAY (Gramin) will have the flexibility for opting for a house under PMAY (Gramin) or PMAY (Urban)”, the HUA said.
The beneficiary who would avail a house under this revision will not be refused the benefits of all future and existing rural schemes.

January 18, 2018 / by / in , , , ,