Latest Business News - After demonetisation, the fillip given to the affordable housing sector, coupled with remonetisation which is again bringing cash, as well as the hope of lower interest rates, would all help the sector see returns.
According to experts, there is a high possibility of prices softening in sub-markets or precincts away from city centres and which have seen a lot of housing supply in recent years. For example, in the Mumbai metropolitan region, precincts such as Vasai-Virar, Palghar, Kalyan-Dombivli, Shilphata and upcoming locations around Panvel have a lot of supply.
“Tier-II and III cities, especially those driven by business communities, such as Jaipur, Surat, Indore, etc, will see a higher impact of demonetisation and easing in land prices in the medium to long term. Certain projects in Kolkata’s northern sub-market might witness price reduction in the next three-four quarters. Vacant land in the north of Kolkata would see easing of prices in the next one year,” said JLL India recently.
Though rating company Fitch has said property developers' sales would come down by 20-30% in 2017, and their leverage positions go up, many believe home sales are bouncing back. These were at a near-standstill in November as as people stood in queues to deposit old notes and withdraw money. The secondary property market and luxury home market were hit hardest, as the cash component was high in these segments.(Read more)
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