Will prices of Real Estate go down in Bangalore?

After the change of government and new measures introduced to curb black money, there have been many changes in the economy, and chiefly in the real estate markets. There have been other significant measures taken too, for example the RERA and the GST.

The cumulative effect of the trio has caused a huge impact on the market, and has changed dynamics greatly. After a very long interval of time, the real estate properties have exuded out of the eclipse of loss, and have moved to the house of gain. This of course was possible because it was backed by RERA strongly.

Present market scenario:

It is to be noted that an effective 10-15% rise in the property sales happened because of the strict rules and regulations of RERA, and even though there is hint of recovery in the market, it can be noted that the entire scenario is still in the favor of home buyers. The effect of demonetization has not still waned.

The market is equipping itself to the new norms of RERA, particularly to the norms like investing 50% of the money in the banks only for the completion of the projects, delivering the project on time, compulsory registering with the government, else payment of heavy fine and imprisonment, etc. Under these harsh conditions, it is still, strictly a buyer’s market.

Due to the strategic approach of RERA, in some markets, the sales have re-launched with vigor again. Builders have found confidence to charge money as before, and the market is still in a better condition than post demonetization.

According to popular reports, everything lies still in the hands of the buyer strictly, and ii, thus the market being in absolute favor of the market. On one hand, this might be favorable for the buyers; on the other hand, there is a risk that the market may move into senescence if nothing is done to help the system recover.

Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results - Warren Buffet

Sales and more:

The volume of projects that took up the market were 1/4^th the projects that were launched in 2015, significantly predicting that the supply has come down to meet the demand. Previously there had been an excess of supply to the markets, making it equate to the market of demand, and this predicts that slowly there will be a rise in price of apartments, and business in this sector will be renewed.

During the first half of 2017, the sales volume was thrown down to as low as 62% and Bangalore region especially saw a downfall of 34%, which is a whopping number. For now, prices in Bangalore have gone down by 5%, which is a big number, if to be considered. Till the real estate industry can heal, the buyers have chances to enter into profitable deals and make more money out of the situation. These low prices will boost sales for quite a number of years, as predicted by most economists. Also, the recovery will be snail slow, so the buyers have time left, said the financial report.