2018 Opportune Time To Buy Your Dream House, RERA Compliant Project
RERA Compliant Project: If you are planning to buy your dream house, with interest rates at almost a decade low, 2018 could be an opportune time to take the plunge. Developers are also rolling out various schemes to attract buyers, but remember to go for RERA-compliant project only. If you have the money, it is always advisable to go for a ready-to-move-in property.
Prices in the real estate sector are likely to remain subdued throughout 2018, according to experts. For ready and resale prices, there could be a recovery. It is likely to see a higher number of completed units in 2018. And the prices of these newly completed projects (RERA Compliant Project) are expected to remain competitive and buyer-friendly. Overall, not too much increase in price levels is expected.
The year 2017 has not seen much action regarding price and sales as the industry is still struggling to recover from the widespread disruption caused by demonetisation. In the eight major markets, sales crashed by 10-30 per cent during the October-December quarter of FY 2016/17 compared to the previous quarter. In cities such as Bengaluru and Chennai, sales were still down by 20 per cent or so in the second quarter of the current financial year compared to the pre-demonetisation quarter (July-September 2016), as per data provided by real estate research firm Liases Foras.
The number of new launches dropped around 30 per cent across major markets during this period while some markets saw as much as 65 per cent decline. In the National Capital Region (NCR), new launches dropped by 41 per cent while in Ahmedabad, the number went down by around 65 per cent. Understandably, developers are now focussing on completion of existing projects as people now prefer to buy ready-to-move-in properties.
Real estate industry is struggling with big-ticket reforms such as Real Estate (Regulation and Development) Act (RERA) and Goods and Services Tax (GST), which came into force in 2017. Experts, however, think any slowdown is temporary and these reforms will shape up the future of the real estate.
Benefits of RERA are yet to reach homebuyers as the Act is still in the implementation phase. And given the dilution brought in by various states, it is not clear whether the Act will be implemented by the states with the same intent and purpose as was done by the Centre.
The only segment where much of the activity is happening is affordable housing. According to data provided by Liases Foras, 25 per cent of the total sales (in most cases houses valued below Rs 30 lakh) across the eight major markets took place in the affordable segment in the first three quarters of FY 2017.
In a bid to achieve its determined agenda “Housing for all by 2022” your dream house, the government has announced various incentives in this segment, including subsidised home loans, infrastructure status to affordable housing and hikes in carpet areas. Doubtless, these incentives are attracting buyers, and more developers are entering the segment in anticipation of the demand.
Source Link- https://www.businesstoday.in/magazine/money-today/real-estate/real-estate-in-2018/story/265608.html