If you are thinking of becoming a new home owner, it is good time to take the plunge and put your money in real estate now.
It is a buyers’ market post demonetisation. If you are looking to buy an apartment in the NCR, this could be a great time to realise your dream. According to market experts, luxury and high-end segments of housing clusters will see a major impact in near future. In short term and mid-term, the property prices could rapidly undergo a correction in luxury apartments. Experts also believe that resale market of the luxury homes will provide much wider bandwidth to the home buyers to choose from.
According to real estate consultant JLL, prices of luxury homes are likely to fall by 25 to 30 per cent following the recent demonetisation drive. It is only because transaction in real estate involves lot of cash payments and now cash component would disappear drastically and now payments would be either made through fund transfer or via cheques.
Interest rate structure likely to reduce further:
The recent ban on high value currency notes is anticipated to have its side effect on the interest rate structure also. According to a report released by real estate experts Colliers International, the property prices could fall further as interest rate could begin to drop in the next 3 to 12 months. Once the interest rate structure is corrected, this would come as a big relief to homebuyers who cannot afford the high EMI on incurred housing loans.
Further, paving the way for transparency and fixing more accountability in real estate transactions many states are likely to implement the buyer friendly provisions of the Real Estate Regulatory Act (RERA). It will raise the hope and anticipated to lift homebuyer’s confidence. This law would also provide them protection from delays in construction and possession, as well as other practices employed by developers.
Terming it as a very good time to invest in the real estate, Harish Arora, MD at real estate advisory firm Saksham Services says, “Housing market is going to experience cooling effect in coming months. These many developments in real estate such as RERA, demonetisation etc. will start taking their shape and new homebuyers can expect property prices to come down. The existing positive scenario in the realty sector provides an opportunity for them to make their move. ”
“Demonetisation will bring more transparency in the system. There will be a pinch in initial period but a long-term impact will cheer up the industry. It expects that the increased liquidity in the banking system, which can be utilised further for lending purposes. This will attract genuine buyers to invest in property”, says Dhiraj Jain, Director Mahagun Group.
However, several events and trends taking shape now indicate that this may be a great time to buy property.