Factors That Can Benefit Home Buyers In 2014
The year 2014 is expected to be a better year for home buyers not just in Mumbai but also other major cities. But, certain factors in real estate must be taken into consideration by the state governments so as to make this year better for property buyers. Find below the top five factors that need to be taken care this year.
Factors benefiting home buyers
1. Affordable homes – Affordable homes are the need of the hour in regions such as Mumbai and NCR. Mumbai and Delhi NCR are currently some of the most expensive cities in India as well as Asia. It is very difficult for a home buyer to find a suitable house within his budget in these cities. Developers too face difficulties in providing affordable homes, since property prices are high in the city. If more land is made available to them at reasonable rates, developers too can provide customers, residential units at reasonable prices.
2. Fast approvals – Single window clearance is another important factor that can help builders and customers. The present approval system is cumbersome and time consuming. It takes a developer at least a year to obtain all the approvals before the beginning to project construction. Prices tend to go up within the time period due to inflation. With a single window clearance system in place, approvals will take shorter time and developers will be able to deliver projects faster.
3. Improving infrastructure – Better infrastructure always drives realty. Good civic as well as social infrastructure such as roads, fly overs, metros, educational institutions, hospitals, power and water supply, and security are required in order to witness demand from buyers. With a good infrastructure, one can expect more buyers to move to the area. Investors too can look at good return on investments.
4. Improved economic conditions – The year 2013 was a bad year for Indian economy as inflation rose and the rupee’s value fell. Many buyers were put on back foot, which led to fall in sales. Thankfully, the RBI has started taking steps to bring back stability in the economy. The employment scenario is also expected to improve this year. Continued improvement in the economy is expected to benefit buyers.
5. Loan availability – Availability of loans to builders at reasonable interest rates of 10-12%, will help in the reduction of number of defaulters in the real estate sector. It will also help in timely completion and delivery of projects.
In addition to these factors, the new government that will be elected this year is expected to bring policies that will be beneficial for the economy and the real estate sector as a whole. For example, the Real Estate Regulatory and Development Bill is intended to create a Real Estate Regulatory Authority for regulating and improving the realty sector. The regulatory authority will take measures for development and advancement of a transparent, productive, solid and intense real estate area for all consumers. It will also protect consumer interests by speedy adjudication of disputes while ensuring orderly growth of the real estate sector.
