Real Estate India Hopes On Affordable Housing For Growth In 2018
Real estate industry is optimistic that affordable housing would help spur growth in 2018, after a roller coaster year that saw multiple policy challenges and the impact of demonetisation.
Policy measures like the RERA, GST, the Benami Property Act and mandatory Aadhaar linkages to property transactions have brought in more transparency, these steps have also impacted the supply side by forcing developers to change their business models.
In the residential space, affordable housing was the only segment that showed some growth, backed by programmes like the Pradhan Mantri Awas Yojana (PMAY). This trend is expected to continue.
The declining trend in the announcement of new projects would gradually “find some equilibrium with demand” and prices would subsequently start picking up, said CMD, House of Hiranandani.
The current environment presents a very good opportunity to take the plunge to buy a house, as attractive offers are available and interest rates are at their lowest levels.
In the commercial realty space, office leasing market would continue to remain healthy in 2018 and beyond, reflecting strong employment growth, he added.
“The sector has seen an eventful year with drastic statutory changes. It will continue to realign itself to end users’ demands well into 2018,” he said.
However Chairman, Anarock Property Consultants, said that 2018 may not bring the expected big residential revival due to weak consumer sentiment on account of poor job market and slow GDP growth.
“The year 2017 will be remembered as the year of disruption and radical policy reforms in the history of Indian real estate.”
Source Link- http://www.thehindu.com/