The Festive Seasons are of great importance for whole real estate market of India.
Dhanteras brings yet another reason to invest in property this Diwali.
Since the festival holds special significance and is considered
auspicious, there is definitely going to be a beeline of investment
buyers.
Despite the fact that the boom in the property market is slower than the previous year, the enthusiastic display of property is still at its peak. Driving into the festive mood, the tradition drives the property purchase, especially in the residential sector.
In spite of a dip in the new launches and ventures, Dhanteras seems to be one of the most flourishing times for the realtors and the buyers. Dhanteras is the time when the realtors settle for new launches and this is also the best occasion for property investment considering great offers and best deals.
However, the 80-20 scheme by RBI was a big hurdle in front of real estate companies. In an 80:20 scheme, the buyer pays 20 percent of the purchase price upfront initially and the balance on possession irrespective of when that happens. As per the advertisements, under the scheme a buyer needs to pay EMI for two years. When an under construction flat is booked under the scheme, the buyer need not pay any pre-EMIs. The builder agrees to pay interest on the borrowers' behalf for a specific period of time while the bank disburses the entire loan amount to the builder.
This year real estate market has also struggled by series of penalties being imposed upon some of the largest developers in the country by regulators and courts. Overall sentiment within the sector has diminished. We hope that lessons have been learnt by realty companies and from now on-wards there would be a positive atmosphere of transparency and trust among various stakeholders within the sector.
In such hard times the real estate market has managed to sell properties, but that to in a moderate way. The festive season favored all real estate companies, but it was not proven to be a fortune. Diwali has covered up losses for real estate market, but what will be the upcoming scenario of real estate industry in India, is a Big Question. Companies have to focus a lot on the completion of projects before launching new projects. With increase in population in our country, buyers will always be there, but gaining trust for completion of projects is key point on which companies have to focus.
Despite the fact that the boom in the property market is slower than the previous year, the enthusiastic display of property is still at its peak. Driving into the festive mood, the tradition drives the property purchase, especially in the residential sector.
In spite of a dip in the new launches and ventures, Dhanteras seems to be one of the most flourishing times for the realtors and the buyers. Dhanteras is the time when the realtors settle for new launches and this is also the best occasion for property investment considering great offers and best deals.
However, the 80-20 scheme by RBI was a big hurdle in front of real estate companies. In an 80:20 scheme, the buyer pays 20 percent of the purchase price upfront initially and the balance on possession irrespective of when that happens. As per the advertisements, under the scheme a buyer needs to pay EMI for two years. When an under construction flat is booked under the scheme, the buyer need not pay any pre-EMIs. The builder agrees to pay interest on the borrowers' behalf for a specific period of time while the bank disburses the entire loan amount to the builder.
This year real estate market has also struggled by series of penalties being imposed upon some of the largest developers in the country by regulators and courts. Overall sentiment within the sector has diminished. We hope that lessons have been learnt by realty companies and from now on-wards there would be a positive atmosphere of transparency and trust among various stakeholders within the sector.
In such hard times the real estate market has managed to sell properties, but that to in a moderate way. The festive season favored all real estate companies, but it was not proven to be a fortune. Diwali has covered up losses for real estate market, but what will be the upcoming scenario of real estate industry in India, is a Big Question. Companies have to focus a lot on the completion of projects before launching new projects. With increase in population in our country, buyers will always be there, but gaining trust for completion of projects is key point on which companies have to focus.
After going through bad experiences this year, the diwali season must have bought relief to real estate in india. It has helped them to cover up the losses they faced this year.
ReplyDeleteDiwali proven to be profitable to real estate companies after struggling through downfalls during whole year….the year ended with good news es for real estate in india….
ReplyDelete80:20 scheme by RBI was a great disturbance for Real estate companies this year. But Diwali festival was proven to be a relief for them.
ReplyDelete