In terms of real estate, Bengaluru has mostly remained a buyer-driven market. The city has adapted itself to the changing market dynamics. Developers in Bengaluru have gone ahead with or restricted new launches. They have been very realistic about the absorption potential of the market. Now that the Budget 2018 is out, the city’s developers will primarily focus on clearing up existing stock rather than adding new ones. Homebuyers who are looking for ready-to-move-in property below the INR 80 lac mark will be spoilt for choice. This is true for all metros of India.
The market is still favouring buyers, as developers are in a hurry to sell-off existing stock. Homebuyers can avail great discounts, more amenities, and reasonable prices for properties. In such a market, going for ready-to-move-in properties makes sense. There is no execution delay, buyers can relocate immediately and save on additional rent, attractive pricing (as already stated), and finally, what you see is what you get. There are no major heartbreaks. You explore, find the one suiting your needs, and you book. Years 2016 and 2017 have seen major disruptive structural changes in the form of demonetisation, RERA, and GST.
As the New Year has started off on the right note, and all experts are of the opinion that the market is headed towards the right direction, ready-to-move-in properties are the flavour of the season. There is increased transparency and developers have embraced RERA. However, many believe that had this year’s budget favoured the middle-class more, the sector would have picked up like never before. Well, opinions do vary. The major takeaway here is that this is the right time to invest in property. You will get more for less. Currently, the urbanisation rate is more than 30 percent, and is poised to touch 40 percent by 2030.
This rate is proof enough that the real estate market in India is set for a major takeoff. The Union Budget 2018 has been more of a balanced one. But it is hard to say that it has been a boon for the real estate sector. There will be minimal direct impact on the industry. Knight Frank India’s Chairman and Managing Director, Shishir Baijal, said that the sector is bereft of any meaningful interventions that could have been achieved through the budget. Due to a lack of changes in direct measures and Income Tax slabs that could have influenced the sector, the demand-supply dynamic has remained more or less unchanged.
However, experts are expecting some strengthening in the affordable housing category. This segment looks like a good bet now after the Union Budget 2018. More focus on smart city projects will further boost real estate activities. A dedicated Affordable Housing Fund (AHF) has been setup in National Housing Bank. This will provide further impetus to the development of affordable housing. In fact, this fund will also major real estate companies to delve into the affordable housing segment, as they will consider this a viable business opportunity. In fact, there may also be an improvement in secondary market transactions.
Due to demonetisation, there was absence of liquidity and the market was in a lot of turmoil. In major cities, the circle rates had gone past market rates. This resulted in a gap between the two rates. But the budget has been a relief as it has allowed up to a five percent gap between the two.