Earlier, the real estate sector used to be largely unregulated and unorganized sector in India until Real Estate (Regulation and Development), 2016 was implemented. The commission of RERA and thereby regulating the real estate sector has led to great transformation within the market. The land developers have come under an authority and the buyers have a blanket over them as now they can reach before RERA authority for their grievances as it provides a sense of protection to them, leading to increase in sales of properties.
RERA has conveyed in greater transparency, timely project delivery and organised development and has further proceeded in as a confidence rooter for potential buyers. About 45% of potential buyers are considering to buying house in 1st quarter of 2018 ensuing the great assurance boost that RERA has provided to them. This has further accelerated the construction procedure as well and has been able to successfully reduce the overall costs for buyers by providing striking discounts and pioneering pricing schemes as well. Permitting of infrastructure status to reasonable housing projects by the centre in 2017 has resulted in a 27% increase of newly fabricated reasonably priced homes.
Cities such as, Bengaluru and Mumbai, have been showing signs of a healthy mix amongst the rest with as much as 14% buyers going for the more than Rs. 1cr. as ticket price for house being developed. It has been further observed that more than 70% of buyers are preferring home loans as their primary and most convenient mode of finance over other options.
While price innovative schemes such as possession-linked payment policies and subvention schemes, the buyers do consider self-financing as their next-most preferred option. Affordable housing and stable property prices have slashed unreasonable ticket prices and made self-financing prospect look brighter.
Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws.