Are you planning to sell your property in India fast? The real estate market in India, which had been left shell shocked by the demonetisation scheme carried out by the government which effectively banned 86% of the high denomination currencies, is now showing signs of revival. There is now a real demand for homes and apartments in the country, which was missing for many years.
The low mortgage rates are expected to play a big role in the revival of the real estate market. The slowdown in the real estate sector in India began in 2014, and continued till 2015 and 2016. The currency ban brought buying and selling activity to a halt for some time, but that has changed in recent months.
Rajeev Bairathi of Knight Frank India says in an interview with the Hindustan Times, “A V-shaped recovery began in 2009. Mortgage rates were brought down to around 8.25% in March 2009. In the first half of March 2009, a rate cut led to 18% growth in sales. There was another 50% growth in 2010. It was V-shaped recovery because the markets collapsed after September and returned with a bang boosted by a cut in mortgage rates.”
Mr. Bairathi says that home prices are more realistic now in India, so there will be a plenty of opportunities to those who are looking for affordable housing in the country.
Ashutosh Limaye of JLL India, however advises caution. He says in an interview with The Economic Times that the effects of demonetisation on the real estate market are still lingering, but expects things to get better eventually: “It was expected that the quarter is going to stay a week because we simply did not see enough activity on streets as far as residential market was concerned. January and February were indeed very weak. We did not have much transactions. In March, it started picking up again.”
“Buyers started venturing into the market once again. The enquiry stage began. We had developers finding visitors but the transactions did not take place because real estate is one sector where you do not really buy on the counter. So you need some homework, you need sight visits. So we do hope that the process that has started March will help us record sales in the coming few months but the first quarter of the calendar year very-very weak, a six-year low in terms of sales,” Mr. Limaye added.
Meanwhile, real estate stocks are doing very well largely because of the Reserve Bank of India’s decision to allow banks to invest in Real Estate Investment Trusts (REITs). This is expected to give real estate developers an additional income stream and ease the monetary pressure on them.
Experts say that there has never been a better time to buy property in India online than right now as the market is going to go up from this point forward. New real estate laws and regulatory bodies such as Real Estate Regulatory Authority (RERA) have been created to protect the interest of the buyers. This is expected to build confidence in real estate in India among foreign investors.