I Bet-Reality Sector Boom

I Bet-Reality Sector Boom

Hello Readers, 

Its been almost 6 years as I am now again starting putting my thought in digital format. hope I will continue and seeking your support for valuable inputs.

I am not an author nor I am involved in any kind of publication but I am a strict news follower, marketing professional and try to analyze every situation and research. These days entire India is welcoming government new move hoping to expect the turnaround of

economy. I am also the big supporter of this move and totally favors cashless economy where you do all thing by just a click of button.

Since the Demonetization drive has started, it is true that various business houses are feeling the heat because of non circulation of notes in the market. All are saying that it will take time to normalize the business in few weeks thereafter all will be well and people hoping for best.

Since I am from Real Estate sector people around me started telling that this sector was already in ditch for past 2 years now it's dead because of curb on black money. Various analyst think that real estate is in existence because only of black money.

My perception is totally different from all analysts and news watcher and I can see bright future of real estate in next 6 months. I am trying to elaborate my perception as below-

If we see Today's real estate market condition and various company sales trends then 70% customers who are buying are the end users who want their flat immediately after booking or max within 1 year time so they can save the rent and live in their accommodation.

Great time are ahead for End Users, since we can see that government has recently enacted the RERA 2016, REIT 2016, Benami Transaction Bill 2016. All these laws are in favor of customers whose concern will be taken care by these bill committee. Now a day’s customer just wants their flat on time, that is the most asked question during pre sales enquiry.

And now this demonetization drive has brightened the future of real estate because property cost are going to be practical and affordable because of this drive. Let me go in details with few steps.

1. Land Cost- Whenever any builders start launching a project they search for land and purchase it from landlords directly in most of the cases and landlords charges the cost above the circle rate due to builder’s eagerness and business prospect. This transaction used to happen in both cash and cheque mode. Now after this drive since the black money will be gone this will be done on range of circle rate so the builder will feel relaxed and ultimately customer will get benefits of low price terms.

2. RERA Bill- This will help to secure interest of buyers and there are various good provisions in this act like builder can sell project only once they have obtained all the approvals, projects needs to be delivered on time if not there is heavy penalty provision, they need to update sales information after every three months. There are various good provision in this act and prospective buyers should read this bill. So through this bill buyer’s interest are protected.

3. Possession Time- These days I see most of the customers ask for possession time as they are anxious because of previous investments which are still stuck. As per my understanding there are various reason for delay like approval of papers, construction company payments, occupation certificate. Now these problem will be vanish because of this demonetization drive because now babu will not ask for under the table payment to move the file, construction company will get on time payment due to particular project sales money will be deposited in separate escrow account. So ultimately there are good reasons to believe for on time possession.

4. Financial Aspects- As industry witness that 80% of end users get their flat financed from bank because they are salaried person and don't have cash. In this case what will happen is after this demonetization drive there will be lots of money in govt or RBI treasure so there are chances for dip in home loan rate once the rate is dip by even 2% we can see spurt in sales which will be never before.

5. Hard Core Investors- Earlier Industry has witnessed that whenever any builder used to launch their projects they were totally depended on hard core investors because these investors used to trigger the market and successfully generated huge sales for company. After all this activities real investor can see the real growth and need to wait at least 2-3 months to get their return. So, It is again going to be good move for Hard Core Investors as well. Having said all the relevant points it is now very clear that in the next 6 months property with greater value is going to attract the consumers. In the another words, once this Demonetization drive completes, RERA Bill implemented than buyers will have very free mind and they are going to invest heavily in this sector.

Lalit Choudhary