In comparison to the last two to three years, the performance of Indian real estate in the year 2017 was lackluster as far as growth in sales and prices were concerned. The property market in India which was once amongst the most sought-after investment avenues in India has witnessed a dip in its popularity lately due to the dip or the stagnation in prices. Previously, the property market was considered a safe place for accumulating black money; however, the reforms like Goods and Services Tax or GST and RERA or Real Estate Regulation and Development Act along with demonetization have hit the Indian real estate sector very hard. 2018 has got something different in store for home buyers and property investors. Experts are of the view that 2018 shall be a good year to invest in Indian real estate.
Reasons Why 2018 would be a Good Year for Property Investors in India
Through its different reforms in 2017, the government made it quite clear that the home buyers and property investors looking to invest in India shall no longer be at the mercy of the property developers. The government came up with different measures for ensuring that the housing supply is in sync with demand and projects are widely developed on a large scale.
So, why would 2018 be a good year for the ones looking to make an entry into the real estate market in India? The answer lies below:
Proper Infrastructure Status to Affordable Housing
Affordable housing shall be a big thing this year mainly because of the thrust on the part of the government. The Indian government has given it the much-required infrastructure status. The government also changed the definition of affordable houses and housing classified under the mid-income group. This has been done for covering a larger property buyer base and for helping developers in offloading their budget developments inventory.
Regulatory Reforms by the Government
2018 is a year that is unlikely to witness any kind of price rise in the Indian real estate sector. Nevertheless, the recent regulatory reforms introduced by the government shall enhance the confidence of the property buyers resulting in an increase in property sales in 2018. The regulatory reforms introduced by the government have changed the real estate market of India to an extent where the sector is now following a certain direction.
The introduction of RERA ensures that all development projects are delivered within deadlines and the cash paid by the property buyers for different projects is not misspent for purposes other than property development. To be very brief, RERA helps in protecting the interests of the consumers thus benefiting both the sellers and the buyers in the long term.
All in all, 2018 will remain one of the best years for home buyers and property investors in India. It is being expected that this year, the market would be seeing increased options in the field of ready stocks because of greater completions. There would not be a scintillating real estate market recovery this year but it is quite certain that the little growth and recovery that is witnessed in 2018 will be quite sustainable and shall also be backed by strong market principles and fundamentals.