New launches could be cheaper in residential real estate, and unit areas could also be lower, maintaining ticket sizes low, specialists say. A high economic growth of the country can only be ensured when it is in proportion to the real estate development of the country. For India, it is a good news that, the first half of 2019 saw an impactful growth with launch of new projects by many real estate groups and that means thatalthough RERA ‘s implementation , has been a little imperfect , there is no doubt that the new law is making new impact.If this is the scale of development in Real Estate, India has all the capabilities to become the third strongest and biggest economy after China and the United States over a span of 15 years.
Reasons for the development of the Real Estate:
India has been a witness to a heavy migration of population from rural to urban areas since independence. The metro cities have since then faced the lack of proper housing facilities. This has been since time-unlimited acting as a roadblockand preventing the country from achieving optimal economic growth.
India is known in the world to be a hub of the potential home buyers. Some of the trends that has boosted the market in the beginning of the year 2019, and are showing trends of cheaper real estate in future is the use of co-living and co-working spaces. Due to these trends a lot of experts feel that this year will be the year of demand picking up and of course of consolidation. Fence-sitters will also realise by the end of this year that prices have started to show a decreasing trend.
The Silver Lining for Home Buyers
The greatest advantage of this situation is that, potential homebuyers are negotiating for cash discounts with the developers and right at this moment are not interested in other offers the developers are offering. India due to it’s huge population basehas a huge demand curve for housing. If the pricing is right, the real estate market would develop and sales should happen.
Developers today are more compatible to negotiate on prices with potential customers and this is a huge contrast compared to a few years ago.Although the RERA is yet to get an effect in many states of India, the act itself has creative positive impact in terms of confidence of the potential homebuyers. Therefore, due to the effect of this law, it had a positiveeffect on themonth-on-month growth in sales during the first half of 2019.
It can also be safely said that the RERA act will not only benefit buyers but will also show the way to credible developers while they try to put an end to immoral activities. The affordable housing segment of the government has also has a major effect to the real estate sector’s growth and has been able to revive the industry.
Although there has not been much of changes in the inventory prices in this yearbut RERA along with affordable housing policies is sure to show a silver lining in the sky of real estate in upcoming years.