Due to Demonetisation, Residential real estate market is slowdown. Though sales have not picked up pace, enquiries have started to come. Builders realised that it is a critical period and coming up with numerous lucrative offers to give a slight nudge to homebuyers. Most of the schemes like heavy discounts and possession linked or payment plan linked etc. Good deals were offered by developers.
Benefits like free maintenance, free first transfer, and 0% processing fee on home loans are also among the offers being floated in the market currently.
Residential realty saw a 15-20% dip in sale volumes in Nov-Dec 2016 due to demonetisation. Both primary and secondary sales were impacted. Investors are expecting that it will take some time for market to regain pace and such offers are being floated to bring back the fence-sitters. But expect a normal real estate market by the end of 2017.
The budgetary allocation for the flagship of Pradhan Mantri Awas Yojana (PMAY), popularly known as ‘housing for all’ (HFA) scheme might be increased by the government. The government may allocate Rs 3,000 crore to the National Housing Bank (NHB) to provide loans to housing finance companies.
The housing ministry M Venkaiah Naidu has asked states to undertake a fresh demand survey to assess housing demand. A technical committee set up by the ministry had earlier estimated urban housing demand at nearly 1.9 crores. Sources informed that the initial reports from states have indicated the demand to be around 1.4 crores. A Ministry Official said that they will get the final estimate soon.
While a group of secretaries (GoS) dealing with health, urban development and sanitation has made the recommendation for providing more funds to NHB, housing minister M Venkaiah Naidu has sought more money for the PMAY scheme in cities and towns.