Real estate selling had been a constant benefactress throughout the fiscal year 2016 and then came the currency ban announcement which made the sector off beaten track. In Kolkata it’s seen that after the demonetization revelation a lot of property in Kolkata north has been alluded to as far outs. This has hugely affected realty sector nationally with the allegation of huge volume of unaccounted money has been perked up over the preceding years. As an after-effect a massive drop down is property price is apprehended by the market experts who think this money-ban move is somehow a temporary slowdown in real estate, but again realty market will turn around in 2017, coining this price fall. Price fall will gather more potential buyers as it would be followed by lower interest rates in home-loans and transparency in the practice of realty business. The report suggests that developers are expecting resurgence from the second half of 2017.
The multi-year slowdown, however, did not deter investment as cash-starved developers raised Rs 48,300 crore in 2016 from private equity (PE) investors to fund their projects, up 53 per cent from last year’s, according to property consultant Cushman & Wakefield. Cushman & Wakefield India MD Anshul Jain said: “With buyer sentiment already low, the recent demonetization by the government has further dampened sentiment of homebuyers.”
Asking about this conjecture the Realtors’ Apex Body CREDAI President Getamber Anand stated, ‘’Housing sales were better this year before note ban. But sales have slowed in the last two months. We feel that 2017 will be a golden year for the developers in the primary market as they will benefit from the government’s demonetization move and a likely fall in interest rates on home loans.”
DLF’s CEO Rajeev Talwar opined, “There has been a lot of cleansing in the real estate sector this year. So, 2017 will be a good year for primary product suppliers of real estate.” He also added, “Housing prices would remain stable in the primary market, but decline in the secondary (resale) one. ‘’
Resale market won’t be much fertile within this period or so. Again lots of residential online transactions are seen on the cards for the virtual property sellers as the current system indulges cashless circulation in every business sector. The year started on a positive note as the government offered tax sops in the budget to improve housing demand and declared an additional Rs 50,000 deduction on interest on loans for first-time home buyers. It also let off REITs (Real Estate Investment Trusts) from the dividend allocation tax. Again there will be a drop in the commercial space absorption expected by the market aces. As scarcity in commercial space absorption has been one of the major causes of the reduced development of quality architecture. The implementation of
RERA will make the process even smooth and will protect the buyers’ right to major extent. Finally buyers are about to get some healthy vibes for their investment with dropdown in home-loans and reduced price of the properties across the country.