The last quarter of the year 2016 has been very tough for the real estate. Though the year started on a good note and high sales but moving to the third quarter things really slowed down and the impact of demonetization was very clear. Not only the market went down but it also saw less participation of the buyers which in turn made the conditions worse. Though the overall idea of demonetization was to curb the black money but it did affect the real estate market in a negative way. Since then the market has not yet recovered but in the coming time, some positive trends can be visible.
If you look back at the last year’s market you will find that things were quite smooth and the market was flourishing. The experts were of the view that real estate would have touched new heights of success as so many fresh projects were initiated and the developers were trying their best to offer timely delivery. But all of a sudden this demonetization changed everything. Sales went down and even the prices got affected nearly to 20-30% which was definitely a direct loss for the developers and the builders. As the real estate involved a lot of cash transactions it greatly got affected thus bringing down the growth rate.
The economic conditions are deteriorating day by day. The GDP rate has also gone down with the market unable to cope with the existing conditions. Though a few months have passed and some sort of positivity has come into the market, the developers are still struggling to get used to the same as soon RERA will also be enforced. So the developers need to be very careful and ensure that sales do not go down but the buyers keep coming into the market.
The first quarter of the present year has seen some rise in the sales as buyers are now entering the market and booking the apartments for themselves. As the prices are low it is definitely a great opportunity for them to invest and buy their dream home. There are few new projects which have started and more will begin soon. It is expected that the sales will pitch up in the coming months with the real estate gaining that stability which is the need of the hour.
Till then we can just hope that things become better soon and the real estate developers bounce back with new expectations and aspirations.