Although the impact of the demonetization of the real estate market was “transient,” the ambiguity over the impact of various policy interventions, such as the 2016 Act (RERA), the Benami Transaction Act (Transhibitions) And goods and services (GST) is very high for manufacturers who remain in the “wait and see” mode, according to a new real sentiment index.
On the other hand, these measures have infused life among institutional funds, including banks. Stakeholders consider that these government initiatives will play a significant role in attracting institutional funds, whose share in the sector was at a modest level, according to the latest real estate sentiment index results for the first quarter 2017 by FICCI-NAREDCO -Knight Frank India.
Impact of policy measures on the residential sector
The residential sector by a difficult phase and the feelings of the developers reflect the same. Nowadays, developers are not clear on the processes and systems of RERA guidelines and take time to re-calibrate their business accordingly, says the actual sentiment index. There is a notable recovery in the sentiment of home sales in the first quarter of 2017 with nearly 64 percent of respondents believing home sales will improve over the next six months. Reasons such as greater transparency in the sector, falling interest rates of banks, attractive prices and strong economic outlook have strengthened market sentiment
However, the survey for the first quarter of 2017 shows that 60% of those interested are not overly optimistic about the housing price appreciation in the real estate sector in the next six months. A large inventory and a slow selling rate are some of the main reasons for the stagnation of prices.
All regions except West show a decline in confidence in the first quarter of 2017. This optimism is that Maharashtra is one of the largest states in the west, is directing the development of systems and processes for RERA, which in turn has high feelings Zoos into the future, according to the index.