How demonetization has affected second home market in India?

There is no doubt in the fact that Indian real estate sector has been going through a tough face for last few years. However, there was a segment which showed signs of improvement with price correction in the top 8 cities in India. And this segment was second home market. The trend of buying second home and vacation homes saw an upswing in H1 2016. But suddenly something happened in the country which shook complete realty market. It was announcement of Demonetisation of high denomination notes in India.

Effect of demonetization

After announcement of demonetization, almost the entire real estate sector came to a standstill. Sales volume of units came down by 9% in 2016 making it the worst year for real estate developers and agents in terms of sales. In the last quarter of 2016, sale of projects plunged by 44 percent (year on year) while launch of new projects got down by 61%. Even the top real estate projects couldn’t manage to sell new units.

Thankfully, sale of new projects by top and ‘A’ grade developers has again got on the right track. But what about the second home market? Let’s have a look at how it functions and how it got affected from demonetization.

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What contributes in demand of the second home?

Second home market is generally driven by the property investors who look for rental income. Apart from them, people looking for family gateway to get relief from everyday life of city also buy second home. With limited availability of cash, the demand for second home also reduced. Only buyers with legal income and desire to follow complete legal buying process are interested in buying second home. But these buyers are also holding back their decision to invest in another home as they are waiting for the prices to go down due to decreased demand. Due to this even the best real estate websites in India are also experiencing a reduced traffic of homebuyers.

Future expectations

Though the market noticed a slowdown shortly, demonetization has offered more benefits than losses. It resulted in price correction in both the primary and secondary market. Around 10-15% price correction has already taken place and experts say this it still has more potential to improve.

Further, implementation of RERA will also contribute in growth of second home real estate market. Buyers have already started coming back to India property sites to find the best project for investment. All in all, an increase in demand and supply for affordable housing is expected in near future. If you are planning to buy a second home to earn more income or to get capital gains, the market is still suitable to enter.

Want to make an investment in real estate? Buy flat in Noida

Since Delhi is facing the scarcity of land, people are now looking at Noida to fulfill their housing needs. Noida city is further expanding and is growing at a fast pace. The expansion of the Noida city is providing immense opportunities to all those people who are looking to buy flats in Noida or wants to make investments in residential or commercial projects. The city has now become highly mature real estate market for both set of people -the buyers and the investors. The real estate market of Noida has high return potential and people have started looking it as a lucrative investment opportunity.

Highly lucrative investment option

·       Even when it comes to the connectivity and the infrastructural facilities, Noida has an edge in comparison to the other areas of NCR like Gurgaon or Faridabad.

·       Noida’s infrastructure is far better planned and the DND flyway serves as a connecting link between Delhi and Noida along with the metro connectivity.

·       With huge IT investments in the city, there has been momentous growth of population in Noida over the past few years.

·       The growing demand for both the residential as well as the commercial properties has led to the acceleration in the prices of the Noida property.

·       Activities such as the sale, purchase of the residential properties, commercial complexes as well as the renting the apartments are quite common in the city these days

Earn rental income with high property price appreciation.

·       There is a high demand of the residential property in Noida and the investment in the residential projects offers promising future to the investors.

·       Due to the appreciation in the prices of the residential properties in Noida, the investment in such area has become highly lucrative option and there is also an increasing demand for the residential property in Noida as well as the demand of flats in Noida extension region.

·       Even though the demand for the housing complexes is high in Noida but most of the people are considering buying the Noida apartments as the second home or buying them just for the investment reasons.

Buy Luxurious apartments with world class amenities

 Government is now making efforts to expand the infrastructural development in the area that will further lead to the demand of property there. With the approval of the metro rail project, Yamuna expressway the city has witnessed high growth. The Noida extension is also turning to the upcoming residential hub where buyers can invest and earn money by renting their houses along with the appreciation in the property prices by manifold.

Find out the property that fits into your budget and needs

 Whether you are looking for a luxurious or a highly affordable small apartment, you can find all types of the houses that suits to your requirements and the budget. So if you are looking to buy a flat, Noida and Noida extension can serve as the best options for you as you can buy the home of your choice without any compromise in the connectivity and other type of essential amenities you are searching for.

Residential Real Estate in India: From a Buyer’s Perspective

As an introduction, the realty sector of India has been on a forefront of competition from various other countries. Amongst various investors and buyers, the entire agenda of real estate in India is coming out to be in the spotlight. In order to promote such development in India, there are many new developers who are taking initiatives. Moreover, the growing real estate prospects especially in the residential sector gives us a clear idea of how the market has been performing so far. The changing real estate dynamics require correct knowledge and approach in order to hit the market at the right moment.

Considered as a safe bet particularly by Indian investors, the residential realty is blooming out to be a game changer in the economy of the country. A market, which was once saturated has now found a perfect place in the growing competition. From rags to riches, country’s realty industry is set for a predictive evolution making India a country with not just a profitable market but also great infrastructure. However, like every other market, real estate also has its highs and lows, which is foreseeable up to a certain limit.

Why is residential market the one to evolve?

Among many other segments in realty industry, the residential industry is making quick progress by the day. Starting from affordable and mid-segment property to luxurious and high-rise buildings, people are betting high while buying a house for themselves or for renting purpose. Challenging at beginning, the market is making profits with every new property being built these days. With every passing year, government has been witnessing a rise in registrations of fresh projects. Therefore, the example of demand and supply fits perfectly in the situation of property segment in India.

A very keen observation has been done, which tells that people shifting from small cities to big metropolitan locations are the ones driving this pile of huge demand. Due to this process, real estate developers are now planning to build more such buildings so that they are more registrations every year. A very interesting aspect has also come into attention, which states that investments done by builders during the year 2012-2013 is reaping benefits for them now. The sudden boom in market happened at that time, thus, making the current marketplace more responsive in this period of time.

It is also predicted that by the year 2022 there is going to be a sudden jump into the luxury segment of residential property. This means that the current flow of revenues is making way for the next big change in the economy of country. Furthermore, with investments being done by NRIs and overseas individuals, the market is expected to be more fruitful.

What lies ahead?

It is tough to predict the exact situation of realty industry of India but there are certain facts that specifies clear win-win scenario. Buying property in India is soon going to become the most lucrative process for investors from regional as well as global market. The concept of affordability has to be kept in consideration while moving into the direction of a more developed market. It is because of the reason that most of the investors belong to the category of mid-segment and affordable property industry.

What’s interesting to notice is that this push in residential segment is making desirable profits or not and that is we’ll come to know when the time is right!