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8 new norms that will boost NCR property market

A series of decisions and laws promise to bring good days to the real estate market

The real estate market has been reeling under a slump and trying hard to earn profits. However, in the last few months, a lot has been done to inject new life into the market. To make buying and selling process more crystal clear, laws have been enacted to bridge the gap between developers and end-users. Experts say these laws will have a positive impact on the demand. HappyKeys lists the new norms that give you strong reasons to buy new homes in the NCR market.

Service tax relaxation:  In a recent verdict, the Delhi High Court ruled that the buyers of under construction flats are exempted from paying service tax. The judgment says that no service tax can be charged from buyers who have purchased apartments after 2012. The court has also directed builders to refund the collected service tax with interest rate at 6%. The experts are of view that the exclusion of service tax from properties under construction is expected to witness improved market sentiments.

Circle rate cut to help market: Recently, Gurgaon administration has sought a 15 per cent cut in circle rate of properties. Market experts believe this move will push more buyers towards investing in the realty market and help to restore confidence in the real estate market.

REIT rule relaxation: Small investors have much to cheer about the government’s new policies that remove hurdles in real estate and offer easy norms to end-users. The new resolution gives freedom to REITs to invest more in under-construction projects. In a new amendment by SEBI, mid-segment investors can invest up to 20 per cent which is likely to lead to an increase in returns.

Floor safety rule: Noida and Greater Noida Development Authorities have made new clause mandatory for developers. From now developers are required to seek floor wise safety certification from IITs for any under-construction projects. The institution will also verify quality constriction and earthquake measures have been implemented or not. This move will certainly ease the burden of home buyers who have to verify from several safety angle.

New exit policy to help buyers: With the enforcement of new exit policy, builders can complete their ongoing projects nearing completion and give possession of flats on time.

7th Pay Commission: The implementation of 7th Pay Commission recommendations has raised the salaries of government employees and pensioners which will boost purchasing power of home buyer. Huge property transaction is expected in real estate sector.

Huge pile of unsold inventory: Rising inventory of unsold flats has led to price correction in Delhi-NCR. According to the latest report by ASSOCHAM, Delhi NCR has the highest number of unsold inventory in real estate with 250,000 units, followed by Mumbai metropolitan region at 98,000 units. New buyers can take the advantage of this situation and can bargain hard while closing the deal.

Model Shop Establishment Act: The rule will give freedom to retail outlets to keep open 24×7. This act will promote investment in commercial sector. Investors can look in the commercial space as in the near future prices may go up.

3 Reasons Why It’s Time To Buy A Home Now

3 Reasons Why It’s Time To Buy A Home Now

If you have been sitting on the fence about buying a home, it is good time to take the plunge and put your money in real estate.

A number of good things have happened over the last six months in the real estate industry which gives strong reasons to buy homes now. The enforcement of RERA Act 2016 will enhance the buyer sentiment. Due to stagnating property prices too, investors are exiting the housing market, bringing golden opportunity for end users.

A number of factors make this a great time to buy property.

  1. Increased customer protection: With the enforcement of RERA Act 2016, industry experts say it will increase interests of genuine buyers. Now it is believed that the strict obligations on quality, material and timely delivery coupled with heightened liability for realty developers will put India’s realty market into a new era of quality and buyers satisfaction.
  2. Bargain hard for discounts (prices are dropping): Rising inventory of unsold flats has led to price correction in Delhi-NCR. According to the latest report by ASSOCHAM, Delhi NCR has the highest number of unsold inventory in real estate with 250,000 units, followed by Mumbai metropolitan region at 98,000 units. The ticket price of 2BHK, 3BHK and 1 BHK flats has seen correction by 35% in Noida and 30% in Gurgaon. This situation may be beneficial for end users and can get their deal closed at an attractive price.
  3. The market is about to become extravagant: The realty market will be entering a growth period and prices will possibly go up. There are many positive signs that confirm the hope for realty market recovery. With the government’s pushing housing for all by 2022, the market will witness a pickup in sales with an improvement in the number of unsold inventories. So, it’s smart time to buy.

This is what experts say

“Potential home hunters looking for homes should take full benefit of the present scenario and invest in properties as prices are stable at this point of time and interest rates are also less. Not only this, buyers may be able to get good discounts as developers have been trying to woo home buyers in order to pump up their sales,” said Deepak Kapoor, president, CREDAI Western UP.

“RERA will further ease the process of buying properties. There are key features of the bill like maintaining an escrow account by developers, barring developers from making changes in the construction plans etc which are in the interest of customers. The regulator will also bring some consolidation between organised and unorganised players in the market. As far as home values are concerned, yes they would definitely start going up in near future not just because rental values are shooting up but also because the last couple of years have laid solid foundation for the times to come in terms of growth and development for realty sector,” he said.

“Various policies and amendments have been announced in past few years as a consistent dose to the sector which has witnessed slowdown in past few years and is now undergoing recovery phase steadily. Interest rates have been slashed, property prices are stable, loan portfolios have increased, focus on affordable housing are some factors which signals that this is the perfect time to invest in properties,” says Gaurav Gupta, General Secretary, CREDAI RNE.