The new year will offer better opportunities to home buyers in the affordable housing segment, although property prices are likely to remain stable, say experts. The end users will gain from fall in home loan interest rates and stringent laws under the recently-notified Real Estate Regulation Act (RERA).
“With payments now being made through cheques, the affordable housing segment on the outskirts of Indore will be more in demand. The expected fall in interest rates and stringent RERA laws will also benefit the end users,” Confederation of Real Estate Developers Association of India, Indore chapter executive member Vijay Gandhi.
Under RERA, builders will have to pay an interest of 10.9% to the buyers for any delay in delivery. Home buyers can also register their appeals against any form of cheating or misrepresentation by the real estate developers. However, the state rules under the statute will come into force from May 1, 2017 and will apply only for projects launched after November 1, 2016.
Limited space and high property prices in Indore city has prompted development along the outskirts. However, the property market is yet to recover from the shock of demonetisation. While land prices hover around Rs 10,000 to Rs 12,000 per square feet in the heart of the city, prices are between Rs 750 to Rs 2,500 per square feet in the outskirts.
“The outlook of property market in Indore in 2017 depends on when the liquidity crunch will get over and also on the new tax norms. The end users will benefit from the stricter laws being introduced by the government. However, the launch of new projects has slowed down as the builders have adopted a wait and watch policy,” Indore property brokers association president Rajendra Bhaiyya said.
While affordable housing segment will be in demand, the property prices are expected to remain stable, say experts. “RERA will improve the sentiments among buyers, but will also increase compliance costs. With payments made through cheques, the guideline rates will have to be followed and the builder’s profit margin will come down while government’s revenue will rise. However, it will not affect the property prices for consumers,” CREDAI Indore executive member Atul Jhavar said.
In a nutshell, the home buyers can expect more transparency in 2017 as the new laws will provide them protection from delays in construction and delivery.