What awaits housing ?
Industry experts believe that the housing market will experience a lull in the coming months, as these developments take their toll. Homebuyers can expect property prices to come down in certain pockets, which would provide an opportunity for them to make their move.
“There is no doubt that sales which involve the exchange of cash will be affected. This will impact land prices too. If land prices crash on this account, there will be a likelihood of property prices coming down as well.”
people are likely to postpone their plans to buy property, which would lead to further increase in inventory levels. As a result of this, developers and sellers could be compelled to cut down prices to drive sales. Most experts are of the opinion that the secondary market will be visibly impacted, since it deals with a significant amount of cash.
The projects undertaken by reputed and credible developers in the top eight Indian cities will remain more or less unaffected.
This is because buyers who invest in such projects take the home loan route, and all transactions are carried out through legal channels. Hence, the primary market is likely to remain relatively untouched by the radical step. However, home buyers can look forward to better pricing in the secondary or resale market.
Property rates will decreased :
For buyers, this could be a great opportunity to get a deal, especially in ready to move-in projects, as real estate prices are likely to face a downward pressure and a few sellers may be more willing to negotiate and lower the prices of housing units
Home loan rates will soften :
If you have been putting off buying your dream home because you’re not ready for the high EMIs, you can expect to have more breathing room now. This is because lending rates are likely to come down further. Due to demonetisation, a large amount of cash in circulation will be brought within the purview of the formal banking system through low-cost current account and saving account deposits. Since this will reduce the dependence of banks on higher cost borrowings, banks are likely to slash the marginal cost of funds based lending rate (MCLR).
Fixed deposit rates have dropped across banks :
Increased liquidity has brought down deposit rates, which would in turn lower lending rates.
Affordable projects coming up :
The launch of affordable housing projects has doubled in the first half of 2016-17, far ahead of other segments.
Source : The Economic Times –Real Estate Posted Date : Nov 21, 2016