Dreamers. Believers. Realty Enthusiasts.
Home buying has always been a key milestone in a person’s life which is often associated with aspirations and hopes of having the perfect place for his/her loved ones which is beautiful, secure and peaceful. It takes a lifetime’s savings to pursue the dream of having an own home.
Following the trails of Demonetization, RERA, GST, PMAY (Pradhan Mantri Awas Yojana); Indian real estate market has witnessed some downfall over the past few years. However, things have started to settle down in favor of aspiring home buyers. The regulations have brought in a much-needed trust factor and transparency which was earlier missing in this fast-growing sector.
Bangalore, the third most populous city of India with a population of over 10 million is bound to see tremendous growth in real estate for years to come in terms of demand as well as the supply of quality living spaces. If you’re looking forward to purchasing the dream home you’ve always wished for in Bengaluru, 2020 is the right time! Let’s see how the recent developments in the sector make it the perfect time to invest in:
RERA (Real Estate Regulation Act) & Benami Property Act
RERA, introduced in May 2016 has made the real estate sector, which was earlier known to be an unorganized sector, much more transparent and streamlined. RERA aims at creating a marketplace where only the good players who provide quality construction and follow the guidelines set by authorities can sustain, forcing all the bad players who relied on people’s sentiments for filling their own pockets exit the market.
RERA has made the entire demand and supply organized, urging all buyers and sellers to comply with rules & regulations and go through the route laid by the act to buy or sell the property, making the entire system transparent and friendly.
Benami Property Act under RERA prohibits all Benami transactions and provides for confiscation of underlaid properties dealing in such transactions.
These facts combined make the real estate market much more customer-centric as they are now empowered to have complete access to the properties which they’re going to purchase, enabling them to make a much more informed decision and also reducing the possibility of scams to a great extent.
GST (Goods & Services Tax) has aided to the real estate market’s growth positively. GST Act has been in favor of the sector with Zero GST on ready to move residential properties, making it beneficial for the end users as they save a lot in terms of taxes. However, on under construction properties, GST is applicable at 12% of the total cost which is proposed to be reduced to 5% from April 2019 onwards. These changes have made housing much more affordable and within the reach of aspiring home buyers.
Favourable Government Policies
The Indian government has understood the high demand for housing for all citizens and for solving the same, they have launched Pradhan Mantri Awas Yojana (PMAY) which aims at passing benefits up to Rs. 2.67 lacs to the first-time home buyers by the way of CLSS (Credit Linked Subsidy Scheme). This scheme is like a knight in the shining armour for home buyers falling under low to middle income group.
Also, affordable housing for all scheme from the government is initiated to provide quality living standards for everyone by offering houses under 60mt2 (645 ft2) at pocket-friendly prices as they attract taxes only at 1% from 1st April 2019 onwards.
Bangalore, the Silicon Valley of India has seen a massive explosion in population over the years, increasing the number of aspiring homebuyers seeking out for the perfect place for themselves. In Bangalore, the rise in population has been the fastest pace as compared to other metro cities. This enormous growth has encouraged builders to come up with more projects to satisfy the demand, which in turn has led to a win-win situation for buyers as now they have a large number of options to choose from for their perfect homes.
Unsold Inventory with Builders
Post demonetization in November 2016, the Indian real estate market saw a significant fall in terms of sales as well as investments, which in turn left all major builders with a large chunk of inventory piled up. Now as the economic conditions have returned to normal, builders are providing their unsold inventory at a much lesser price than the average appreciation that was expected in the past. This makes this the preferred year to purchase in real estate market as the prices are likely to increase from the next year onwards.
Capital appreciation opportunities
With massive infrastructural development in place throughout Bengaluru, the land and property prices have seen a significant appreciation. Even at the times when the real estate market across India was having a fall, Bengaluru’s demand in commercial and residential spaces continued to enhance owing to the fact the boost in population. This demand will be increased further in the coming years, making 2019 the perfect time to buy in real estate for investment purposes as well.
All these factors combined make 2020 the ideal year for homebuyers to plan and purchase their much-awaited home in Bangalore. Also, this year is very crucial for builders as they have the responsibility of meeting the high demand for quality living spaces and that too complying with all the regulations laid down by the authorities.
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Wait no more, 2020 is the year to take that quantum leap and get Hometastic!