CommonFloor Survey: Consumers expect Property Sales to rise within 6 months

With the announcement of the Union Budget for 2015-16 round the corner, the real estate sector expects much from the government in terms of new initiates as well as higher budgetary allocations towards existing proposals that were announced last year. Expectations are high considering the positive initiatives taken by the government, particularly with regards to its ‘Housing for all by 2022’ proposal. The government has already estimated that about 22.5 lakh crore would be required in the coming years towards fulfillment of its ‘Housing for all by 2022’ proposal.

Consumers’ response to CF survey

A survey was conducted by commonfloor to gauge the response of consumers across India towards their expectations from the upcoming Union Budget 2015-16. In response to a question regarding when they expected the budgetary policies to have an impact on property sales, a considerable proportion of respondents (37.5 per cent) felt that it would take about six months. 12.5 per cent respondents said it would take about a year, while 50 per cent were unsure about how long it would take. As per the survey, a majority of respondents are unsure about how long it will take for the budgetary policies to reflect in property sales. This points to the fact that the government machinery needs to propagate its policies in a more effective manner to instill confidence in the prospective buyer.

Impact of previous Budget on realty sector

Property sales post the Budget, remained glum, across the country except in realty markets like Bangalore and Pune where there was an increase in demand. This has got to do more with the scenario that followed last year’s Union Budget. Even though the government announced various initiatives post the Budget, it failed to drive the point to the common man that it was sincere and relentless with regards its various initiatives favouring the realty sector.

Expectations from upcoming Budget

The Union Budget for 2015-16 is expected to propel the realty markets across all major cities in India. This is because of the high expectations that the real estate sector has from the Budget in terms of initiatives favouring the sector as well as budgetary allocations towards major proposals. However, it remains to be seen whether these expectations are fulfilled by the government through the Budget.
Initiatives like affordable housing and cheaper credit facilities for such houses needs to be given emphasis so as to reach out to the common man. This was what was lacking last year and what will be the challenge before the government, post the Budget. Hence, the impact of the Budget can be deciphered not only based on the initiatives taken by the government in the Budget but also with regards to keeping its promises with regards to already promised proposals in the previous Budget as well as impending ones in the present one.