Indian Real Estate in 2018: A New Dawn Begins

Jan 1
21:12

2024

Rahul Maurya

Rahul Maurya

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The Indian real estate market experienced a rollercoaster ride in 2017, with the first half of the year marked by a significant slowdown. Housing sales plummeted by 44% and new launches decreased by 61%, largely due to the demonetization initiative by Prime Minister Narendra Modi. The resale market was particularly hard hit. However, 2018 promises to be a year of recovery and growth for the Indian property market, with several positive trends emerging.

Factors Driving the Revival of Indian Real Estate

  • Decreased Property Prices: One of the most significant long-term impacts of demonetization is the reduction in property prices. Other factors,Indian Real Estate in 2018: A New Dawn Begins Articles such as the new interest rebate policy in the Pradhan Mantri Awas Yojana, are also contributing to lower property prices set by developers in 2018.
  • Reduced Interest Rates: The Pradhan Mantri Awas Yojana scheme has outlined lower interest rates for property seekers (4% rebate for loan amounts up to Rs. 9 lakhs and 3% rebate for loans up to Rs. 12 lakhs). Additionally, increased liquidity in banks means more money available for loans, which will further decrease interest rates for home buyers.
  • Transparent Transactions: The Real Estate (Regulation and Development) Act, or RERA, and the Benami Transactions (Prohibition) Amendment Act will make transactions more transparent in 2018.
  • Relaxed FDI Rules: The Indian government's relaxation of Foreign Direct Investment (FDI) rules will accelerate the real estate process. This will result in a significant capital influx into the real estate sector, attracting more investors.
  • Increased Investment: Large investments by private equity player Blackstone indicate that 2018 will see even more substantial investments. Chinese conglomerate Dalian Wanda is also expected to invest up to $10 billion in India.
  • REITs Becoming a Reality: Real Estate Investor Trusts (REITs) are set to become a reality in India in 2018. With major private equity players like Blackstone investing as much as $600 million in REIT listings, this process is gaining momentum.
  • Organized Development: The real estate sector is expected to become more organized in 2018, thanks to recent government policies. Only developers with a strong reputation and successful track record will thrive in the Indian real estate market this year.
  • New Schemes to Attract Buyers: Builders and developers will introduce various schemes to attract more buyers and clear the inventory built up in the previous year. Buyers are expected to take advantage of these schemes.

These are some of the latest real estate trends that will shape the Indian property market in 2018. The positive changes are expected to encourage more people to buy their dream homes. The Indian real estate market is set to witness a new dawn.