The real estate sector had a very low demand before and there was about 4 consecutive years of slump. But now the market participants believe that 2018 will bring some revival because the real estate sector has now completely shed the impact of demonetization as also the effect of Goods and Services Tax (GST). The market has also made an implementation of Real Estate Regulatory Act i.e. RERA. It is the opinion of various business stakeholders that the real estate sector can be pushed forward by the government role in New Residential Projects in Delhi NCR. This can be done by giving it an infrastructure status because of which the cost of funds can be lowered for the developers as also it will reduce the prices for the consumers.
Although the demand for real estate is not bullish i.e. does not depend upon the rising share prices, the sector is day by day rising slowly and taking a new form. All this is because of the consumer demand for the unsold inventory that now finally has customers. Chief Business officer, Mr. Narsimha Jayakumar at a huge property advisory website named ‘99acres.com’ says that at first, the number of units unsold was 600,000 but now the number has decreased to around 450,000 in the entire country which is a positive sign. Also, according to him, the real estate sector is going to improve and will grow gradually.
Results show that, in 2017-2018 period, according to the reports generated by various markets like Mumbai, Delhi, Bangalore, etc. across the country, there was an increment of about 30% in sales than the sales in the period of 2016-2017, which again is a good sign for real estate sector. There were sudden instances of rise in the prices of various properties across the whole country. It was also observed that there is a rise on online search of properties as well. Jayakumar saw various examples where they interpreted that there was about 50% growth in search and about 40-50% growth in the queries asked by buyers for buying Commercial Properties for Sale in Pataudi Road Gurgaon.
The people belonging to the real estate sector also felt that apart from the factors that affect the market, there are some structural changes as well as consolidation among small players that is being observed. The implementation of RERA has largely affected the market. Further the players in the real estate market also believe that rental housing policy can also play a significant role in the real estate sector.