Why investing in real estate is the safer option

Why investing in real estate is the safer option

Posted on May 29, 2018 at 11:15 AM

Why investing in real estate is the safer option

Buying a home is undeniably one of the biggest and the most crucial decisions of your life. Investing your hard-earned money, spending years of savings and going through an arduous home loan process could be a tough choice. Hence, it is important that the returns should be really good and an investor or a buyer must feel secure and convinced after investing his years of savings in a residential project. With a recent wave of transformation in the industry, the buyers certainly have several queries in their mind.

  • ● Why you should be investing in Real Estate in 2018?
  • ● Is it safe to invest now in 2018?
  • ● What does 2018 look like for Indian property market?
  • ● What is the future of Real estate in India?
  • Let’s investigate the current scenario and also analyse the phase that shook the entire Industry

    2017: The year of pitfalls

    • ● Indian Real estate saw some rickety and unsteady times in the year 2017. It was a roller coaster phase for the realty sector in India. With the sudden implementation and execution of demonetization by the government in November 2016, the entire industry and economy was affected.
    • ● The home developers, builders as well as the home buyers suffered this agony the most as it involved cash transaction during the buying, selling and construction process. As a result, sales and housing development hit a stagnation point, resulting in record drop of land sale and the prices of residential units.
    • ● Finally, when the market showed some signs of stability and growth by April 2017, the announcement of RERA and GST shook the entire system, causing unrest and confusion amongst the developers, buyers and sellers. Sales witnessed an all-time low, buyers held back all the transactions as they awaited fresh regulatory norms by the government and authorities.
  • The Silver Lining 2017 – 2018:

    • ● Despite a bleak situation in the beginning of 2017, the positive effects of RERA, Budget 2017 and GST have finally begun to show up now.
    • ● There was a sudden increase in buyer’s demand for 2 BHK and 3 BHK homes. Buyers also opted for ready to move in residential projects by reputed developers due to ease and hassle free process.
    • ● Budget 2017 boasted of attractive proposals like – Affordable Housing – Housing for All by 2022 has promised uncountable benefits to buyers.
    • ● With land sales hitting an all-time low and the further reduction in prices, it was the beginning of an exciting buyer’s market phase. The end product was never this affordable and it was the perfect time to indulge in buying.
    • ● Excess supply and low demand situation has given a terrific opportunity to negotiate, by and bag the best deals of their lifetime. Couldn’t have been better than this!
  • The Rise and Shine of Real estate: 2018 and beyond

    • ● Buyers, developers and everyone else is looking forward to some already bright beginnings this year. The positive impact of all the policies and regulations have started showing the impact now.
    • ● Predictably, the entire focus will definitely be on affordable housing segment. Successful completion of unfinished projects will be a priority over new or unlaunched ones. As a result, there will be transparency in handover, delivery of properties.
    • ● Real-estate developers across the country will now be concentrating more on the specialised services and niche capabilities in different segments of realty. There will be serious players in commercial development, land development, townships and residential projects
    • ● Realty segment likely to touch $ 180 billion in 2020 and create employment for 12.2 million. Real estate estimated to contribute 13% to GDP in 2025
    • ● RERA has been beneficial in bringing back the trust and confidence of end consumer by ensuring a transparent end to end process between buyers and sellers.
  • As RERA Rolls:

    • ● All projects need to be registered with the authorities. A Standardized carpet area and a standardized pricing, ensures complete transparency
    • ● RERA Empowers the buyers by giving them the Right to Information. RERA entitles the buyer or investor to get all the relevant information related to the property or project they are buying or investing in
    • ● RERA ensures same rate of interest for both the parties in case of default. If the homebuyer or investor delays the payment or the builder delays the possession of the house or property, the rate of interest shall be same for both.
    • ● RERA gives benefit in case of late possession and a penalty for misrepresentation and hiding of necessary facts
    • ● RERA gives rights to the buyer or the investor of withdrawing completely from the property or project in the case of late possession of the same by the builder. In this situation, the buyer or investor shall be entitled to a full refund with interest.
  • Final Verdict:

    The implementation of recent regulatory norms, government intervention and the transparent process has triggered a visible revival of interest by Global investors in Indian real estate industry. As a result, the real estate sector and the buying market is all set to exhibit a remarkable change. The current scenario offers excellent opportunities to buy, invest and ensure good profits and positive returns in the years to come!

  • Sources – Anarock, CREDAI, Economic Times, Industry