As the real estate authorities have transformed the market by their pro-buyer stance, the market sentiments have grown more positive than ever.
2019 has been a year of reckoning for the real estate sector. As a swarm of government acts and reforms thoroughly cleansed the industry, buyers became empowered and their demands grew specific and confident. Processes became transparent and those who failed to deliver succumbed to the policies. Marketing and pricing strategies got a jump-start with government aid. The combined effect of market slowdown, liquidity crisis and such other problems made survival of the fittest a norm for the industry. Those who won the consumer sentiments by their responsible approach remained untouched from the adversities of the slump. The Gurugram market has been one of the top gainers throughout the year. According to the report by a leading survey agency, the Millennium City witnessed an increase of more than 30% in sales and has doubled the number of new launches.
The year 2019 has ended on a good note with various government policies extending their helping hands to the developers. A slew of acts and policy reforms have empowered the buyers more this year and will help the realty industry gain its confidence. One of the major trends expected to rule the market is the delivery of ready-to-move-in homes. Timely delivery after the completion of projects will encourage the buyers to invest in the realty sector, marking 2020 a right time to buy a property. This will benefit the developers and the overall housing market by increasing the sales of projects and demand.
The slashing down of GST rates from 12% to 5% has renewed vigour in the segment. The introduction of funds to the tune of twenty thousand crore and twenty five thousand crore in the month of September and November, respectively, has had a rejuvenating impact. This fund is expected to revive 80% of the stalled real estate projects.
The industry is on the path of recovery. It has left behind the ghosts of the NBFC crisis and many stalled projects are set to see the light of the day due to the favourable policies by the government. The cutting down of the repo rates by the RBI to a nine-year low of 135 bps throughout the year being one such example. The year 2020 is likely to see this trend continue, which will be a huge boost for the realty sector as buyers would get access to cheaper credit.
As the real estate authorities have transformed the market by their pro-buyer stance, the market sentiments have grown more positive than ever. Buyers have grown more informed and confident, promoting an atmosphere of healthy business in the sector. While all these factors align the buyers’ sentiments with developers, the industry has great hopes from the year 2020. Disciplined by the RERA Act, a majority of developers have shifted their focus from new launches to the completion of ongoing projects. As a result, the New Year 2020 is set to see the delivery of a large number of new units in India’s major housing markets, which certainly is a good news. The policy changes and allotment of funds are already bearing fruits as the transactions have increased by the end of year, promising a way out of the times of slump.
(By Amit Kaicker, Business Head-DLF, New Gurugram)