In the current year, real estate business has taken a new turn with various influences from government. RERA or Real Estate Regulator Bill, GST, Demonetization, FDI relaxations, Benami Transactions (Prohibition) Amendment Act and the verification in the IFRS accounting standards are some of the major names that have taken responsibilities to push forward real estate business into a more transparent and buyer-friendly market. Various schemes have made credible impacts in the overall views that have also inspired upcoming projects in Chennai.
Home buyers have always felt insecurity due to the scams played by various fraud estate companies. After such grand involvement from the Government’s side, buyers are getting enthusiasm to invest in estates and purchase homes for them. Indians have always felt a great attachment on the idea of having their own houses. This is exactly why the changes found in the real estate market have taken a right turn and initialized positive outcome.
Accusation And Reality
There were many accusations made on the sudden reforming actions by government. The most alarming one would be demonetization where old currency notes of Rs 500 and 1000 were banned within a short notice. This has lead real estate dealers into a curvy road because since many years these housing markets were one of the main streams of black money. This was the original fact that was hammered down. But research results are showing that trustworthy home builders have never suffered a backlash effect after those reformations, rather they felt uplift in the demand to buy flat in Chennai and other popular metropolitan cities.
In the beginning of 2017, there was a temporary side effect in real estate markets due to such announcements but experts are claiming that it will never be a valid cause to stop home buyers to afford one for them. The sales are growing again due to some strategic approach by these companies by building comfortable and affordable houses. The demand is still increasing due to the lowering down the interest rate upon home loans by major banks including SBI.
Effects In The Future
Top companies involved in this business have already foreseen the effects to come in future and have accepted it. They have changed their methods in the new projects in Chennai that will be sold because they are affordable and comfortable. There is no doubt that the actual target of such acts like demonetization and digital economy is to wipe out useless and fraud real estate dealers and builders from the markets. The gap is filled by reputed companies who will abide by demand and supply.
Favourable Situation For Builders
Since there are few builders left who are involved in creating houses for interested buyers, so quite naturally there is an imbalance originated after less supply and more demand. This is definitely a favourable situation for builders because to buy property in Chennai and other metropolitan cities, investors will offer more value to get their hands on a decent apartment or house.
The difference in values can surely provide opportunities to income more than normal circumstances. Real estate builders should definitely take their chances to evolve in this business before this temporary situation fades away from their grasp.