Starting this year end users are fuelling the business of realty sector across India. Armed with the new RERA Act, which benefits users, many builders are on the back foot. There will be more changes that will change the shape of the industry.

Back in 2015, there were talks of the real estate bubble being re-created. But the slump carried on and it is now 2017. Commercial spaces and apartment projects are poised to be more lucrative to the end users. What is surprising is that the builder community is making initiatives to make amends and reach out with incentives.

What’s more even RBI is bending its hawk-like stance to lower rates so that buyers who were procrastinating are also jumping into the fray. Will 2017, witness a new era and revive the fortunes of genuine business owners in India? Let’s see how the wave of change will send ripple effect to Bangalore, which is the 4th largest growing city in India.

Investors take a back seat

As end users make a beeline for luxury apartments, investors are now looking elsewhere to park their funds. Will this open inventory for genuine buyers?

Yes, the process has begun in many apartment projects across the city of Bangalore. There has been a price correction of 25% in many apartments, which are on sale. With this correction it is making buyers attempt to at least check out new homes to live in or at least shift from the current neighbourhood to a new one.

The city also has witnessed new immigrants coming into town and looking for accommodation. They are also encouraged by the price corrections to think about buying homes on EMIs. These are also genuine buyers who need a place to live while they work in the city. As they think of buying new homes, the ‘risk-return’ factor is also ebbing.

Real Estate in India still in demand

There are more people living in rental homes in India. As banks hold the key to financial loans, flexi-payment schemes, the commercial schemes are improving. Even FDI has opened new avenues to collaborate.

With a large population, which is clamouring to live in cities, India will always remain a popular residential market. Realty sector will thrive more on the end users who are now young and aspirational.

Many builders who make luxury villas in Bangalore have tied up with international professionals to help Indians to get a better lifestyle. Plenty of luxury housing schemes has big names that have portfolios with overseas projects. NRIs are impressed with the efforts of developers who choose to outsource skilled professionals for the housing schemes.

In fact with the FDI in real estate, the commercial projects have also got a fillip. JLL reports that Bangalore is a potential micro-market for large commercial spaces. A city is known to be dynamic according to its ability to adapt to the rapidly changing environment and this greatly applies to the realty sector. That being said, Bangalore is in the top position, snatching away the title of the “most dynamic city” which was previously held by a Vietnamese city.

What about costly loans and high-end properties?

When there was an influx of IT companies in Bangalore, and professionals were getting huge salaries, they invested in real estate. But the slowdown in both industries got them into a phase of uncertainty.

It is clear, that the next six months in 2017 will revive the fortunes of both the sectors, which are interlinked. Executives who have been stuck with properties will now be able to get back investments more as end users rather than as investors.

Those who invested in large properties between 2011 and 2015 continued to pay interest for the loans borrowed. Some executives took money to invest across cities! Till 2016, empty apartments, incomplete housing blocks, and mounting loans worried the buyers. What is it about 2017 that everyone feels things will change for the better?

Benefits to consumers

New rules, awareness workshops, exhibitions, price-cutting and promises being fulfilled will bring back trust levels.

The builders are now doing their best to gain the trust of the buyers. In fact they are also changing their sales and marketing tactics to communicate better with the end users.

What’s more, various pre-launch schemes, offers and transparent deals are encouraging the people to trust them. Builders also let people visit the site and show sample flats to the customers. If any changes can be done are discussed freely.
Sure the landscape is changing. It is the time that getting a roof over the head is not a big deal but a smoother one.