The last two years were tumultuous ones, years that had a significant effect on the country’s economy. The introduction of demonetization which was aimed at exposing black money further worsened the situation. It had a major slowing effect on the real estate sector, though it also resulted in making all transactions considerably more transparent. The merging of various taxes into a single format called the GST, also helped in regulating building costs, resulting in benefits for the builders as well as the home buyers.
Both these amendments have been helpful in regulating the residential real estate industry. This is not to say there weren’t any hiccups during the transformational stages though. Prospective home buyers had gone into the wait-and-watch mode, resulting in a build-up of inventory. This had further created a burden on builders as there was a loss of liquidity to invest into newer projects.
All this led to a lull in sales in 2017. The introduction of RERA, the Real Estate Regulatory Authority body, also meant that small-time players in the real estate industry had to get disintegrated. Since many couldn’t qualify for the RERA norms, they preferred to consolidate with the larger players in the field. This body also offers an address forum for homebuyers who feel they have been cheated by the builders. So the introduction of RERA has to lead to greater buyer confidence in the year 2018.
With the consolidation of all amendments in place now, the year 2018 is definitely a buyer’s market. Consequent to lower sales in 2017, there is now an excessive supply of homes at regulated rates in the market. So for homebuyers who have been sitting undecided on the fence till now, this is the right time to take the plunge before this situation of demand and supply changes. Lower home loan interest rates are a further boost for homebuyers as EMIs are now more customer-friendly. With a greater supply of homes existing presently, prospective home buyers even have the edge to negotiate further with builders and get great deals.
And with fewer housing projects being announced in 2018, the surplus housing supply is bound to find a balance between demand and supply, making 2018 the best year to buy residential properties. This will be more conspicuous in fast-growing cities like Trivandrum, Kerala, where the IT boom has lead to an increased demand for quality housing. If you are interested in buying villa homes in Trivandrum, this is a perfect time. Check here for more information: https://icloudhomes.in/.