Residential projects in Gurgaon: Where from here?

The Real estate property in Gurgoan forecasting in India is a difficult proposition at the best of times, but never more so than post demonetization. We could confront with numerous unknown factors. For Gurgaon, this is compounded by the state of the market pre-November 8, 2016.

2016 has not recently been the best of years for the Residential projects in gurgaon. Revenue volumes plummeted further to practically half the two absorption numbers. New unit launches were limited, approximated at one-third the 2015 figure. While quoted prices remained stable, good discount rates and incentives were available during private negotiations with developers. Once again, investors who had fuelled demand throughout the boom stayed away from residential markets. Principal buyers of the  residential real estate were end users, who preferred to set up or near ready-to-move-in flats.

Table of content The Slow and Steady- Real Estate in Noida Real Estate in Pune – The Golden Goose Buy residential property in gurgaon

This is probably the best time to buy property in Gurgaon. Buyers today are well-informed and give greater credit to both brand and quality. They are skeptical of talks of future infrastructure upgrades or other such promises.

Post-demonetisation, Gurgaon, like the rest of the country, is grappling to formulate new guidelines of. Exactly how factor in the black component of the price now? Is the new price arrived at by simply subtracting black money or will black money be back accepted in the form of the new pink currency? Buyers believe that prices will fall by 20-30% and are thus be ready for the marketplaces to crash. Sellers, on the other hand, are resisting dropping prices, depending on banks to lower home loan rates and on the government to deliver a populist budget -- the one which will reduce income tax rates and improve the tax-free slab. Marketplaces are in the stage of price discovery, leading to a complete standstill.

This really is not merely due to demonetisation but also attributed to real estate (Regulation & Development) Act, expected to be implemented by Haryana by April 30, 2017. Gurgaon builders will follow a global trend of new regulations, inevitably leading to developers holding off releases to see how government bodies enforce new rules.

However, the government must deliver all promised infrastructure. To avoid generation of black money, the government needs to align circle rates with market rates -- the gap in Gurgaon is among the highest in the metros. Stamp duty should also be reduced. Consumers will reward a good and cost-effective product delivered on time. Invoice and demonetization should collectively make realty more attractive in the long run.

The journey of real estate so far has been stiff , however as the things are coming back to normal post demonetization we can hope for some good slice of news.