The booming real estate market had witnessed a sudden fall last year due to the sudden implementation of trends such as the RERA (Real Estate and Regulation Act), GST (Goods and Services Tax) and Demonetisation led to a decline in the value of Rupee hence adversely affecting the real estate sector.
However, it is believed by certain experts such as Mr Pankaj Bajaj Eldeco, President of CREDAI and Anshul Jain (Cushman and Wakefield). It brought certain existing projects to an utter standstill.
Mr Pankaj Bajaj said:
“Housing sector is going to get a revival....40,000-80,000 homes are achievable targets. These projects are nearly ready waiting for last mile-funding or stuck in authority completion certificates”
Large housing finance institutions like Housing Development Finance Corporative Ltd and LIC Housing Finance Ltd. are much optimistic about the year 2018 on retail lending.
Harsh competition has pushed the banking sector to lower the retail lending rates for housing. Due to the roller-coaster ride witnessed by the real estate sector, during the past year, most of the major cities of India have detected
quite a slump in the launching of new housing projects. One of its recent examples is the delay in delivery of promised homes by developers such as Jaypee Group and Amrapali in Noida, which led to a protest by the housing association of Noida and the aspirant buyers.
Affordable housing looks out as an appealing prospect for developers this year, due to unmet demands and also due to beneficiary incentives provided by Government of India and other financiers (such as RBI) and also interest subsidies.
Affordable housing could be the one segment that could lead to a major renascence of the housing sector in the upcoming year. Next two year are predicted to witness quite a growth in the real estate market due to long-term effects of RERA and demonetisation.