6 Reasons Why 2018 will be the Growth Year for Indian Real Estate Owners
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The last few quarters of 2017 have slowed down the Real Estate market to a simmering investment pot making hardly any profits on account of Demonetization, RERA and GST. But we all know that the principle of real estate investment is 'Earlier the better'. Real Estate has, even in bad times, always provided better returns than any other investment like Gold, Equity, fixed deposits, etc.
The new and improved real estate market will rekindle interest a new home buyer due to the following reasons.
1. More transparent Real Estate market
RERA has ensured that every buyer is protected by demanding better accountability and transparency in every transaction, material and plans by builders and brokers alike. So buying a home from a well-established builder is the best option as it will be RERA compliant.
2. Low Home Loan Rates
It has been found that most of the banks have reduced home loan rates due to the economy gaining back its momentum. Reduction in loan interest rates can be beneficial to the end user. The interest rates reach an all-time low because of the government's push to ensure 'Housing for All'. The banks are offering home loans to salaried borrowers at just 8.25 percent. With home loans so cheap it's better to buy homes now than later.
3. High Return on Investment
After demonetization, land prices have rationalized all over the country. As developers paid less for the land to launch new projects, the price of the actual property decreased as well. After RERA, builders have to specify the costs of the project which means lower property prices than ever. Also in light of the new stable structure of the market, property prices will increase at a steady rate. For first time home buyers, this is the time to buy a property for high future returns.
4. Progressive Infrastructure Development in the MMR Region
New infrastructure is being constructed by the government to increase reachability and ease of access to the city of Mumbai like new metro lines, intercity express corridors, the new airport and widening of old roads. This will cause a massive increase in the price of property in the future which shows that this is a good time to invest in real estate for high returns in the foreseeable future.
5. NRI Market has increased after RERA
Staying in another country but still wanting a place to call home in your homeland has always been the dream for most NRIs. The NRI market has seen a considerable increase as NRI's now have faith in the builders after RERA's need for accountability. As 70% of the flat cost paid by a buyer has to be used for the project development as well as the fixed possession dates has made it easier to trust in builders while overseas.
6. Affordable Housing
The government has not forgotten about its citizens who cannot afford luxury properties. For them, they have introduces schemes like the Pradhan Mantri Awaas Yojana wherein families whose household income is less than 18 Lakhs per annum can get discounts up to 2 Lacs on a new property. This was done to achieve the aim 'Housing for All' by our PM. Affordable housing has given homes to more than 2.7 Lakh families in the past year alone. And with GST charges dropped from 12% to 8 % for affordable homes, if you need to buy a small space due to property cost, the right time is now.