Modi Builders anticipates 2018 Fruitful for Indian Realty Investors
India’s real estate sector has undergone some notable changes in the recent quarters. Modi Builders speculate that the forthcoming years will increase the confidence of investors in the market. The several initiatives taken by the government are likely to bring a transparency in the realty market. The developer expects that the impact of the regulations, implemented in 2017, will be much visible in the upcoming years.
CEO of Modi Builders Group, Sourabh Satish stated, “I think the policy changes, introduced by the government, are powerful enough to reform the Indian realty market. The implementation of policies like RERA, REITs and demonetization in 2016, and GST in 2017 will surely make 2018 a productive year for both investors and developers.”
The Hyderabad-based developer proposed various reasons that will make 2018 a lucrative year for investors.
· Regulatory Reforms
The government has implemented various regulations that are leading the Indian realty sector in a positive direction. These regulatory acts include, Real Estate Regulatory Act (RERA), Real Estate Investment Trusts (REITs) and Goods and Services Tax (GST) to an extent. It is being anticipated that the dynamics of Indian realty market will remain positive in the long run.
Modi Builders has reviewed that the implementation of RERA will improve the overall sentiments of investors. The act ensures that the projects are delivered in time. The leading constructors believe that buyer’s money will not be exploited for other purposes.
Finance Manager of the realty group said, “The new government policies are mainly designed to protect the interests of the consumers. They are just like the provisions of the RERA, which ensure timely deliveries of the projects to the buyers, thereby reducing frauds. It will definitely wipe out the shady operators and only the most reliable will operate in the market. This will not just benefit the buyers, but also the sellers.”
· Market of the Consumers
The practices of the recent past have led to the excess supply and low consumption. Correspondingly, the high prices have resulted in the increase of inventories across the country. The implementation of demonetization has also affected the consumptions of properties. Modi Builders believes that the market, for next few quarters, is of the consumers and not the suppliers.
Sourabh Satish said, “As the government introduced RERA, most of the developers are focusing on completing the existing projects. This is likely to bring a downfall in the supply of the properties in future. Though, I feel that the prices will pick up the pace as the balance between the supply and demand is being created.”
In the present scenario, there is an excess supply in the Indian real estate market. For that reason, buyers are in a position where they can negotiate better.
· All-time Low Interest Rates on Home Loans
The Reserve Bank of India (RBI) has reset the loan rates due to the liquidity in the banking sector. This has also led to a reduction in the home loan interest rates. The interest rates in 2016 were recorded around 9.5 per cent. However, they are now fluctuating between 8.3-8.4 per cent.
The leading constructors of Hyderabad are expecting the home loan rates to remain low in the future. Pranjali Sourabh, who is also the CEO of ModiGroup said, “We are estimating that the home loan rates will remain low for the next quarters, or they may even descend further. In this case, the consumers will have a chance to make considerable savings in the EMI costs.”
Modi Builders reviewed that it is too early to judge the overall impact of the regulatory acts of the government. Though, they are pretty sure that in the long term, the Indian real estate sector will witness a positive change.