When the new government took charge in 2014, it was expected that the real estate market would get revived, but property prices remained low. As a result, the urgency that usually surrounds the decision to buy a house-for investment or residence alike-abated. What replaced this urgency was complacency; would-be home buyers began to feel that since prices are in a downward spiral, they should delay the purchase of a home until prices fall even further.
But data suggests that the realty market has remained stagnant, and it is unlikely that property prices will fall even in the latter half of 2016. Thus, these delays may very well be in vain.
Further, experts from JLL India and Cushman and Wakefield suggest that prices of real estate are likely to rise in 2017 and beyond, confirming that 2016 may be the last year that homeowners can enjoy reduced rates.
In “Smart Cities Mission”, the government released the first list of 20 cities it is working towards making “Smart”. This list has made it much easier to recognise signs of development a real estate investor must look out for when deciding where to invest.
You can see, when a city has secured adequate water and electricity supply, proper sanitation and waste disposal systems, robust IT connectivity and digitalisation, effective health and education facilities or even greater connectivity to metros, it shows the government’s dedication to developing it.
Further, as companies start setting up base, there is an influx of employees, and that increases the residential real estate demand, forcing property prices up.