The real estate industry in India gains immense momentum – Deepak Yewle

Aug 07, 2015
There was an era when the real estate market suffered from a major blow due to the dipping economy of the country. The real estate industry in India had to deal with low absorption levels, oversupply, and rise in unsold inventory along with high prices. The confidence of the sector improved with homebuyers preferring to invest in larger homes across cities and apartment property in Chembur, Mumbai. There has been an improvement in economic conditions along with government strategies and initiatives towards increasing the purchasing capacity of the individuals. It has paved the way for faster growth in the coming months. Hiranandani Construction, a leading real estate developer, offers apartment property in Chembur at reasonable prices.

· The current scenario of the real estate market

According to industry experts, the residential segments continue to remain the primary focus of the real estate market. Due to the shortage of urban houses In India, it is estimated that a large section of the population is moving to the cities. The primary reason for this is the change in the lifestyle, which, in turn, showcases a latent demand for real estate in India. The principal requirement for a residential apartment property in Chembur, Mumbai, stems from an affordable housing segment that caters to the low- and middle-income sections. The Reserve Bank of India (RBI) reduced the key lending repo rate twice; however, it is yet to be passed on to the end-users. The reduction in rates increases liquidity in the hands of homebuyers who can now purchase flats with home loans at lower interest rates. The government launched three urban development schemes, and the infrastructure status has been recognized as an affordable housing segment by the RBI.

· Builders and buyers leverage on new government initiative

New schemes and policies imposed on the banking sector by the government are working in favor of the real estate market. It encourages potential investors to buy their dream homes at affordable rates. Hiranandani Constructions and a few other top-notch real estate developers believe that the ‘Housing for All’ initiative can enable stakeholders to borrow money at a lower cost, thereby enforcing a strong push from the demand side. These schemes promote affordable housing for weaker sections through credit-linked subsidy.

• Expectations in the next few months

The sluggish market trend that was seen in the previous years was prominent in prime cities and metros. The prices hiked to a point where investors could get their desired return, thereby leading to a decline in the demand. Inflation had resulted in the decrease in purchasing power. Thus, it affected the financial confidence of the salaried class people in India. However, the recent repo cuts will shortly promise to lower the home loan interest rates. The reduced cost of the capital has encouraged banks to reduce their lending rates. Such a step has spread a positive sentiment among buyers and investors. All those homebuyers, who were hesitant about buying a second home or purchasing an apartment property in Chembur, are now willing to go ahead with their plans.

· The realignment of current and expected prices

Firms like Hiranandani Construction are strategically positioning many residential projects and apartment property in Chembur as it is slated to bring back the rhythm in the real estate market over the next few months. The demand for premium residential projects is expected to increase in the second half of the current year. Thus, it gives hope for the realignment of current and expected market prices. The focus of developers continues to remain on recovery and clearing of inventory, construction deadlines, and backlogs. The festival season in India, too, can help drive sales in the upcoming months.

With provisions such as low-interest rates and increased liquidity being introduced by the government, both the demand and supply of the real estate market is expected to rise. You can plan to buy a luxurious apartment property in Chembur to gain high returns on investment.