Consumer sentiments seem to be the crux of all discussions. With the forthcoming Budget 2017, on February 1, industry experts and the other stakeholders of the market have started voicing their wish list and predicting the outcomes which will severely impact the buying capacity of the consumers. Consumers have been postponing their decision to purchase a house for some time. The last part of the year 2016 was hit by the government led demonetisation, which curtailed cash flow amongst people. However, once the initial dust of demonetization settled down, industry experts actually asked the white-collared buyers to go ahead and make the purchase. This segment of buyers mostly have accounted money and therefore do not need to worry about transactions. Since the sellers were pressured, the time seemed right as buyers could negotiate better on prices. Both the developers, seller community and buyers have pinned their hopes on Budget 2017 to make the real estate market fluid again. The Budget is important as consumer demand is at its peak if favourable measures get introduced. According to Magicbricks survey, over 60 per cent respondents of the survey - ‘Demonetization impacts home buying’, have been waiting for the market to get some clarity before making an investment.
he government's move to ban high denomination notes has hit the real estate sector, especially the residential segment, hard, with bookings virtually stopping and people postponing their purchase decisions on expectations of a rate cut. In an interview with ETRealty.com, Dhruv Agarwala, CEO, PropTiger talks about the impact of demonetisation on the real estate sector, on land prices and the outlook for the residential real estate sector for the next 12 months.
The housing sector witnessed a lot of policy changes in 2016. Cities in North India, especially Noida, witnessed severe downturn in home sales as home buyers lacked confidence. Factors such as implementation of the real estate regulatory Act (RERA), hopes of a price cut, etc, forced home buyers to delay their buying decisions. In an interview with ETRealty, Niranjan Hiranandani, CMD & Co- Founder - Hiranandani Group of Companies, feels home sales closures have gone down by around 35% across metro cities after demonetisation. However, he says financial year 2017-18 will be a gamechanger for housing market.