There has been a lot of ambiguity about the performance of Real Estate in India, especially post demonetisation. There are many uncertain sentiments about price correction across regions. However, experts predict 2017 to be a game changer for the real estate sector owing to policy level changes, reduction in rate of interest by the banks and interest subvention scheme announced by the Prime Minister of India. To understand the buyers sentiments, Magicbricks, India’s No 1 real estate portal, conducted a survey on, ‘Will you buy a house in 2017?’.
According to the survey, over 68% respondents were positive towards making an investment for buying a home in the year 2017. The survey also reveals that 60% of the respondents are willing to pay within the next 6 months. This clearly indicates that there are streaks of positivity in the real estate market.
As per the survey, the main reason behind buyers hesitating to invest right now is that they are waiting for the prices to come down. Almost 65% of the respondents agreed that they are waiting for the prices to come down to make further investment.
Magicbricks had recently conducted the first digital and exclusive interview of M Venkaiah Naidu, Union Minister of Urban Development, Housing and Urban Poverty Alleviation, wherein he revealed the government’s vision for 2017-18.
- Housing Approvals within 60 days – Housing approvals in Delhi and Mumbai will come within 60 days. The notification for the model approval process in Delhi and Mumbai is expected soon, Naidu told Magicbricks.
- RERA – Naidu further stated that a central advisory mechanism should be created, to ensure fair practices at the Centre and the states and to realise the mission of Housing for All By 2022.
- Affordable Housing boom: In an effort to spur creation of houses for all segments and involve private sector developers as well as funding agencies, infrastructure status for affordable housing was announced in the Budget 2017.
- Housing for All 2022: After years, the Finance Minister agreed for infrastructure status to be given to Affordable Housing. This will bring in more money to the banks and focus on creating housing stock.
The Magicbricks survey also revealed that majority of the respondents prefer to buy homes in metropolitan cities. Majorly, the respondents preferred investing in cities like Mumbai, Delhi, Noida and Bengaluru. Also, 53% of the respondents have their annual income within Rs 10 lakh and 25% have an annual income of Rs 11 – 12 lakh which means their preference for housing types, sizes, price and location will vary from one person to another depending upon their budget.
So, if you are one of those who have postponed their home buying decision last year, the positive government moves are sure to strengthen your buying decision this year. Even in this slow moving market, the infrastructure and policy developments currently seem to possess the potential to infuse momentum into the sector.