The Union Budget 2016 has infused new life in the real estate sector. It is promising to turn things around, coupled with initiatives taken by the government to ensure a roof on every man’s head.
There was a phase where projects got delayed even by big developers since fluctuation in building material, increase in home loan interests and many such factors were affecting sales. But not any more. The government is now broadening the scope for a home-owner and a prospective buyer so that he/she takes the step to invest in a clear and transparent investment and does not burden himself/herself with the load of high interests and debts.
The factors that are likely to improve sales are:
Steps such as financial stability provided by the Union Budget and initiatives taken by the government to lessen interest on home loans and no Service Tax for houses built under 60 square meters is helping. Additional exemption of Rs 50,000 for housing loans up to Rs. 35 lakh, provided cost of a house is not above Rs 50 lakh.
Luxury features and facilities that new age builders are offering are another factor that has roped in customers to invest and live a life of luxury. New concepts like customisable homes, greater views, safer residences, etc. are something that every individual is in search of and since the prices have become more reasonable, sales are picking up.
Completion of projects and quick possession of houses is a positive sign for consumers. With this positivity spreading, could lead to more people investing in property.
Every sector goes through highs and lows. Like every other business, real estate too has a few risks, but when you get the end result of turning a levelled land into a high rise residential tower that is home to a hundred odd families, the joy and pride is priceless.
The author is managing director, Sarvome Developers.