The
Budget 2017 has boosted the slowed real estate sector in India
especially by announcing infrastructure status to affordable housing,
which has served as the backbone to the sector for long. Its impact
on real estate developer in Gurgaon will be worth noting. Gurgaon –
a big player in India’s real estate sector – has been grappling
with difficult times especially since 2015, and in 2016 the sales
volumes for propertiesin Gurgaon
further went down and new unit launches were limited in the city.
Further,
demonetization during the end of 2016 further affected real
estate developers in Gurgaon
like in the rest of the country. There was stability noticed in
quoted prices and discounts were still available, but people stayed
away from buying residential
flats in Gurgaon.
Gurgaon saw a fall in investment in the residential properties as
residential buyers, much of whom were primary end users were on the
lookout for ready-to-move-in flats and were wary of promises of
future infrastructure or property. Overall, Gurgaon’s real estate
market saw a great dip recently.
With
the new budget placing affordable housing under the category of
infrastructure, the government plans to get closer to its goal of
providing affordable housing for all by 2022. This newly-granted
infrastructure status also makes available cheaper funding options
from real estate builders who can now access funds at a borrowing
rate less than 10% for developing affordable housing, leading to a
subsequent and definite reduction in purchase costs for homebuyers.
About
95% of the demand in the real estate sector has been of affordable
housing. With reduced borrowing rates, the real estate developers can
now focus on constructing housing projects where a major demand lies,
and look forward to a healthy growth in this segment.
The
budget has benefitted the end users the most. With enormous tax
benefits offered to people in the lowest income bracket as a
significant tool to push affordable housing, the dream of many to own
a house now seems to get closer to realization. Also, with
demonetization, banks have been further flooded with funds, and there
are speculations that banks will low interests rates further and come
out with affordable and attractive home loans. Future home-buyers
have been watching the market carefully.
As
a real estate market, Gurgaon has great chances of recovering from
the downtime in the recent past. One of its driving strengths has
been its ability to churn out high quality office spaces, and now
while building on this strength, if the real
estate developers in Gurgaon prioritize constructing and launching ready-to-move-in affordable
housing projects that end-consumers place high value on and
subsequently reward, then Gurgaon will soon rise up as a strong real
estate provider meeting the housing needs of its residents.
Signature
Global is a reputed name in the real estate sector in India. In
Gurgaon, Signature Global is already constructing five housing
projects under Haryana government’s affordable housing policy, is
all set to invest Rs 500 crore in two more projects of affordablehousing in Gurgaon.
