Forecast for the year 2017?
The year 2017 will definitely shed the dark clouds and despite the slowdown, Indian Real Estate sector will pose a bright picture. This positive belief develops from the foundations that have been laid in the year 2016 by the Modi Government in making our economy stronger that will have a direct impact on the Real Estate Sector.
India’s Real Estate Sector has seen a paradigm shift in the way trade is conducted in the country over the last 10 years. With the right kind of people entering the trade at all levels, this industry has a future that is going to change the image of the real estate consultants and also developers. The word Professionalism and organised sector are not the thing of the past any more. We are in the ERA where real estate business is holding its roots strong enough to compete with some of the developed countries in the world. We as RE/MAX firmly believe that the year 2017 is going to be imperative in shaping up this industry to be transparent and customer centric.
Gazing back at the year 2016, we saw some historic steps that have laid foundations strong enough for the sector to revive the buyer sentiments. For any individual owning a house is the key necessity that they aspire to own one day. High prices and high rate of interest compel them to settle for rented property. However, the current reforms taking shape could transform their dream of owning a home into reality. The government’s move to curb the black money from the market and clamp down black money hoarders is a step that eventually will lead to reasonable reductions in the Residential market. With the ban on the higher currency of Rs 500 and Rs 1000/-, government has been successful in the transmission of hoarded cash into the banks and making our banks richer than never before. The positive side effect of the move is the reduction in the interest rates for home loans. This will come as a huge relief for the people who have the aspirations to buy a house and have not been able to take the decision of buying the property due to high EMIs. Demonetization’s after effects will be visible in the year 2017 that will lead to growth in the affordable housing sector as we can expect a sharp reduction in the Interest rates on home loans. This will drastically narrow down the gap in the price difference of the EMI and rent for the same property. With the Rent, almost same as EMI, an individual will prefer buying the property.
Moreover, with the implementation of RERA in all states, the industry will strengthen further by becoming more structured and transparent. The organised developers and realtors who follow the RERA guidelines will gain trust of the buyers. It will also build a sense of security for a buyer and make this industry strongly buyer driven. The home buyers can now bet on reputed developers for their property investments and can feel safe with their investments. With this change, will come another major change at the brokerage front. It’s the perfect time for large organised players to grasp the opportunity and work towards building a professional brokerage business. With the changing profile of the customers, it is important for the broker to work ethically and provide full support and service to the customer. Gone are the days when brokers were mere Sales people. The new age broker is there for the smart customer; he is there to hand-hold, guide, advise and take the customer through the entire process of making a property purchase decision in a transparent, thorough and clean manner.
FDI in real estate is also expected to boost the sector with the greater inflow of foreign capital. Government’s projects like “Housing for all by 2022” and “100 Smart Cities Project” will give an additional boost by substantial participation by the government and the foreign investors. This in turn will strengthen our Real Estate sector and revitalize the growth of realty sector.
The Realty Sector plays a significant role and has been a key contributor in the growth and development of the Indian economy. With Indian Real Estate market size expected to touch US$ 180 billion by 2020, growth in the Indian economy will definitely witness positive expression in the real estate sector.