Real Estate Veteran's Take on #3 Things to Impact the Indian Property Market in 2017
State and government level policy changes, bank loan rates, country's current economic health and other factors play a very important role in setting new trends in the real estate markets.
Harsh Vardhan Neotia – Chairman of the Ambuja Neotia Group, who has been running his real-estate family business for over decades, spoke to Entrepreneur India on what he thinks are going to be the upcoming trends in the real estate market.
Real Estate (Regulation and Development) Act to ensure transparency
The real estate market, having suffered in the last few years due to an overall economic slump, is now beginning to move towards a more stable and disciplined era. Having learnt from past experiences, developers have realised the importance of sticking to commitments of project delivery in order to retain customers' confidence. This discipline is also enhanced by the passing of the Real Estate (Regulation and Development) Act in March by the Centre, which ensures transparency from builders.
End-user driven growth
Different markets have already seen a spurt in launch of new projects and this trend is likely to continue next year. However, with many home-buyers sitting on the fence for some time waiting for the right opportunity to buy, the sector is likely to move from investor-driven to end-user driven growth. With the Indian economy poised for stability, home sales will pick up if developers focus on improving customer-experience.
Demonetization and GST
While demonetization and GST are disruptive changes as far as consumer spending behaviour is concerned and there seems to be some uncertainty as to how the demand curve will move going forward, these changes are unlikely to become dampeners for the real estate market in the mid to long term. Any short term impact, if at all, may take place in the ultra-luxury segment.