New Delhi, May 22, 2018: Till a year back, the real estate sector of India had been much in limelight due to the floating negative sentiments caused by delay in possession of projects, coupled with sky rocketing prices especially in Tier 1 regions of the country. These reasons had dented the housing demand and is causing drastic fall in the interest of potential customers along with heavy inventory pile up for the developers. Being a case of land, big depreciation is pretty much off the cards and hence, can prices come down becomes the question. But in order to keep the market and sentiments stable, developers needed to provide some extra cushion.
It is crucial to understand that real estate sector is an end user to almost 35 other industries and sectors, and if this sector is drowning, then it is not fruitful for the economy in general. RBI has played its part seemingly well over the last couple of years by bringing down the key rates. Almost half of the rate cut benefit has been passed on by the banks. It was time now that developers also chip in to help this market get back on track.
My sense is that there is a little bit of everything that needs to happen for the revival in the real estate sector. There was an issue of certainly how they see the housing market and how they see prices. There had to be an adjustment so that more people want to go and buy which was witnessed and markets have settled to the rock bottom prices. Real estate is an asset which is somewhere bound to appreciate with time. But the kind of appreciation that most Tier 1 regions across the country has witnessed, it had taken the buyers away from the market, especially investors, who were a prominent sight when the property prices were low. Housing demand is driven most by end users who again were looking at property prices which have settled down to an all-time low and there are no chances of prices going down further and it’s the best time to invest in the sector.
Corporate Comm India(CCI Newswire)
