2016 has been fairly positive news for the homebuyers. The prices of the affordable housing solutions are already at the low, and some outgoing steps were taken by the Govt. which made the weather sunnier. Let us see what made Indian real estate better this year.
1. Scrapping of the currency
It has been days since the big announcement but demonetization is still the most trending topic. No one can keep shut talking about it. It is probably one of the biggest decision by the Indian Pm which shook the whole nation. The real estate got affected by this measure to curb out the black money the most. The secondary or the resale market is the place where most of the black money is parked. Now, the property prices in the secondary market would fall and more buyers would be interested in buying. The banks are getting the huge deposits and the interest rates are supposed to decrease in the next budget. The market would get a push and the unsold inventories with the builders would be selling fast. Read more about it.
We cannot appreciate the Govt. much for the RERA they introduced in the states. The states have already released their set of rules under this act. The transparency is going to increase with all the transactions to be digitised. The builders holding back the updates from the buyers can be presented in the court if the buyers plan to do so. For the delayed possessions, the builders are fined by the Govt. which puts a pressure on them to deliver fast.
3. End to the Benami transactions
Benami properties are the ones purchased by one person under the name of another. Such practise is quite common in India to adjust the black money. Govt. passed an Act in 2016; Benami Transactions (Prohibition) Amendment Act which bans such practices and the person found guilty would be sentenced to 7 years of imprisonment and a possible fine too. The property would be confiscated by the Govt. and the owner would not receive any compensation in lieu. This provision would bring down the property prices and new opportunities would get opened for the low-income buyers.
4. Courts took a step ahead
While RERA states that the real estate cases need to be solved within the shortest duration of time possible, the courts already gave a verdict in the favour of the buyers. This year, courts asked the builders to refund the money to the buyers who do not want to hold the flats on the project in Noida. This is a ray of hope for the modern buyers that of anything goes wrong, the law is with them.
There are the four instances that prove that the Indian real estate is going to restore its lost glory. It is going to become as attractive as it was in the last decade. The buyer is now the King of the market and he is able to purchase the property on his conditions and at his price.