Gurgaon, a major player in India’s real estate sector, has been dealing with tough times, especially since 2015, and in 2016 property sales volumes in Gurgaon declined further and new unit launches were limited in the city.
Furthermore, demonetization during the end of 2016 further affected developers in Gurgaon as in the rest of the country. Stability in quoted prices was noted and discounts were still available, but people stayed away from buying residential flats in Gurgaon. Gurgaon saw a drop in investment in residential properties as residential buyers, many of whom were primary end-users, were looking for move-in-ready apartments and were wary of promises of infrastructure or future properties. Overall, the Gurgaon market experienced a big drop recently.
With the new budget that places affordable housing in the infrastructure category, the government plans to move closer to its goal of providing affordable housing for all by 2022. This newly awarded infrastructure status also makes cheaper financing options available to builders of Real estate that can now access funds at a loan rate of less than 10% for the development of affordable housing, leading to a subsequent and definitive reduction in purchase costs for home buyers.
About 95% of the demand in real estate has been for affordable housing. With low borrowing rates, real estate developers can now focus on building housing projects where demand is high and expect healthy growth in this segment.
The budget has benefited the end users the most. With the huge tax benefits offered to people in the lowest income bracket as an important tool to boost affordable housing, the dream of homeownership for many seems to be closer to being realized. In addition, with demonetization, banks have been flooded with funds and it is speculated that banks will lower interest rates further and obtain affordable and attractive home loans. Prospective home buyers have been watching the market closely.
As a real estate market, Gurgaon has a good chance of bouncing back from the downtime of the recent past. One of its driving strengths has been its ability to produce high-quality office space, and now, while building on this strength, if developers in Gurgaon prioritize building and launching move-in-ready affordable housing projects that consumers Finals stand tall. value and subsequently reward, then Gurgaon will soon become a strong provider of real estate that meets the housing needs of its residents.