Why it is The Right Time to Invest in Real Estate

  • The Indian residential projects in Mumbai were in a state of transitions, after the recent of reforms by the government.
    However, home buyers and investors are now in a win-win situation after clarity has emerged on the impact of reforms such as
    demonetization, the Goods and Services Tax (GST) and the implementation of the Real Estate (Regulation and Development)
    Act (RERA). The results have brought in more transparency and confidence among all stakeholders.
    How do you know whether it’s the right time for your entry in any investment channel? Is it the juncture when the markets are
    flourishing, and everyone is joining the fray? Probably, not! Well, if you are on board, we would further explain why 2018
    should be the year, you should enter the real estate market.
    How RERA Changed Things: -
    With the RERA in place, developers are now focusing on completing their existing projects. The overall numbers of project
    launches have gone down by more than 40% in the first nine months of the current calendar year. These trends imply that the
    supply side from real estate developers will gradually find some equilibrium with demand, and prices will subsequently start
    picking up pace.
    When it comes to home loans, the excess liquidity in the banking system have led the RBI reign the key lending rates. Hence,
    the home loan interest rates that were recorded at around 9.5% a year in 2016, have now have been floating in the range
    between 8.3-8 %. Also, considering the average annual rental yields at 5%, there is not much difference between the costs of
    rent and owning a home.
    Overall Exposure to the Real Estate Industry: -
    The guidelines of RERA 2016 empower property buyers, while enhancing financial discipline, governance and transparency
    among real estate players. GST was implemented to iron out multiple tax rates among different states and usher in a uniform
    tax structure for the entire nation. This brings clarity to both real estate players and consumers. Going forward, factors like
    rapid urbanization, increased migration to cosmopolitan and Tier 1 cities and the government's focus on infrastructure and
    affordable housing will give the required impetus and push to the real estate sector.
    In overall, the current environment presents an opportunity to buy property and make the best out of the coming year.
    Affordable Housing - A Growing Sector: -
    Post the government’s revision on carpet area of homes under the MIG (Middle Income Group) category and PMAY (Pradhan
    Mantri Awas Yojana) scheme, affordable housing is seeing better days. Real estate developers are making the most of this
    boost and are offering middle-class homebuyers better options in the affordable housing sector.
    Thane's real estate market evolved since the year 2000: -
    Before 2000, Thane was considered as a real estate market for people belonging to low and middle income group. Mumbai had
    some affordable vacant spots back then for those looking for a first home. However, people migrated from Mumbai's central
    and extended central suburbs to Thane in search of a Project near Thane. Post 2000, Thane's growth story took baby steps with
    some real estate developers showing interest. This trend was observed till 2004-05.
    Well, if you’re looking for a well-versed property to invest in, do visit www.anddevelopers.in