The ghost of demonetisation has haunted everyone. It is natural that even the real estate market has also suffered. The budget declared in 2017 has also made some impact in the industry. Will it be able to provide some compensation to the realty sector? There is no denying that the land parcels in the north of the city have been affected. These include the luxury villa projects that have slowed down for some time. If you are looking for plots for sale in North Bangalore, then you may have relief as property prices are being corrected and re-structured. And this may be your opportunity to get a luxury villa plot at a more affordable price tag. What are your chances if the budget provides comfort to homebuyers?
Prices will not drop too much
Don’t be under the impression that the prices will fall drastically. If you wait any longer, the plots of sale in Bangalore north may remain the same or rise a little bit. The construction activity has stopped only temporarily. So, the real estate sector is still in the reckoning. The window of opportunity for buyers will continue in the luxury segment. Yes, the cash crunch may have created a few road blocks but only for those who deal wholly in cash. Those who own illegal properties will suffer. But those who invest in projects by developers and hold a reputation in the sector will not cheat buyers.
What about those who need home loans?
Majority of the banks which offer home loans are correcting and adjusting their interest rates. The impact is not too much on the homebuyer’s plan to buy villa plots in North Bangalore. The budget has been home buyer-friendly and this means that the realty sector will continue to remain in business. But the interest rate cuts are only for the buyers. What about the industry as a whole? How can it recover from the crisis after demonetization? The sector contributes about 12% of the GDP in the country and the budget cannot overlook this aspect. It has nearly 150 allied industries that are connected to it. Other than agriculture it has to remain robust with more positive reforms. A real estate regulatory is being formed and once GST will be introduced in April 2017, things will become brighter. There are better incentives for first-time buyers by way of tax incentives.
What do developers feel after the budget has been declared?
Most developers are still waiting for better compensations. Also, they are hoping for a reduction in stamp duties and government approvals that provide single window clearances. Both buyers and developers have to spend time in dealing with multiple agencies. Although the interest in gated community plots in north Bangalore have not waned, developers are hoping that buyers will not wait for too long to invest. Most builders, big and small feel that reduced interest rates will bring back the investors for end use property buying. Many industry leaders also feel that there should be more end users rather than mere investors in the sector. Now there is a marked difference between the affordable housing segment and other segments. Low income group buyers have some cheer and luxury homes are seeing a drop.