There are rampant news articles about there being a correction in pricing of real estate by various opinion makers who seem to think they have the authority to make such claims, said Qais Noorani of CREDAI Belagavi.
As an industry body representing organised real estate,we again reiterate that the industry has always been catering to the primary market which comprises of end users who aggressively avail home loans.
Moreover, with this step of demonetisation, banks are again going to be flushed with liquidity of approx. 15 lakh crores and will be compelled to lend aggressively.
To do that ,they will have to lower interest rates.
Demonetising currency has also removed surplus liquidity from the market and this in turn will result in low inflation .
We expect that the RBI would definitely, in the coming months ,reduce the REPO rates by at least 2% so that a home loan would come down to at least come down to 7% .
The home loan rates coming down to such levels of sub 7% in the next year or so, the atmosphere will become more like the west where home loans are available at 5%. and below .
Unlike the western countries, India has a documented shortage of housing and homes ,an aggressive domestic demand for real estate.
This essentially means that in the presence of a lower home loan interest regime, a larger pool of home buyers would avail loans to buy the home they always wanted.
This could be made possible in as soon as the next six to twelve months.
The housing industry will start to grow at a rapid pace while concurrently being in compliance with transparency and fair practices like RERA .
We appeal to potential home buyers to understand the long term effect and benefit of this great move and not be misled into believing that property prices will fall.
Currently the real estate market is at its best possible price point with no further margin with the developers to reduce prices.
Now it is the responsibility of financial institutions to enable home buying during such an optimum scenario.
http://realty.economictimes.indiatimes.com/news/residential/home-land-prices-set-to-go-down-as-govt-bans-old-rs-500-rs-1000-notes/55319402
Property prices are surely to fall. This posting in All about belgaum is somewhat contradictory.
My post here is based on what CREDAI said..
Do remember :
“The Worst is YET to come” under BJP rule.
Bull shot from desperate builders in belgaum.
exactly, these guys have vested interests. Any person with common sense knows that real estate prices will fall. There is no doubt about that
Ban on old notes (500 & 1000) is the good move from govt.for removing the black money from all the sectors..
Take the world “But the land rates will not reduce..” to reduce rates of land is not so easier.. Because rates of land goes as per individual public requirement and urgency.
And there are lots of causes for increase in property prices other than land..
The way we can reduce the property prices such as.
Reducing
1) reduction in taxes.
2) raw materials..
3) now a days construction industry is facing lots of labour charges.. Min 50 % of total cost is going for labours..
4)and lastly stoping of all the govt authority corruption..
I agree with you Nileshji. First corruption from govt. offices should be removed.
I think Property prices have to come down , which are very high today . For people to buy , there should be employability enough . I donot think , lesser interest rates would increase market . There are enough NPAs in Real estate estate . For Investors , post tax yield is 2 to 4 % at the most ! which is negligible, considering Inflation . Even for End users , it makes lot more economic sense to rent out , as considering borrowing interest rate and rents that they pay , they may be saving 5 to 7 % yearly . Era of appreciation is not visible immediately . Instead asking only Banks to reduce Interest , which not Builders/ Developers reduce rates by 10 % and see if they can sell . Let them try for few units .
CREDAI Belgaum at least now stop talking rubbish. Common sense dictates prices shall fall and that too drastically. Real estate survives on CASH only. Once this supply is punctured, it does not require rocket science to figure out that you guys will try to create illusions. Come clean. People have had too many bad experiences with real estate. The best example is our great Bella Vista @ Nanawadi.
That is fine. It is like asking a barber do you need a haircut ?
Editor, my comment has not been posted. Any reason ? I hope it was not passing mention of a troubled builder.
try reposting we have no pending comments
Thanks!. Excuse for my comment.