Impact on the Pune Real Estate Market after 2019 Elections
Will there be an impact on the Pune real estate market after the 2019 elections?
Many home sellers and investors are eager to see the impact after the elections.
After the return of BJP government for the 2nd term, real estate analysts money control, Knight, Frank survey, the investor JLL, Business Today, and The National, etc. shared their views to analyze the situation and its impact on the real estate market.
Let’s understand the background and changes experienced over the period of time since 2014.
During 2016- 2017
After demonetization, implementation of RERA (Real Estate Regulatory Authority ), Benami property act, and GST during 2016. The real estate market had experienced slow down in new construction projects. It was confusing and unclear for builders to understand these new rules. Developers could not launch new projects during 2017. In this period the number of launches was lower than the number of units sold. Limited cash transactions, availability of cash compared to the old days made a tight situation for builders to invest in new launches.
RERA is considered as one of the milestones for the Modi government to bring transparency, accountability, and financial discipline in the real estate sector.
During 2018 – 2019
During 2017 developers spent time in understanding RERA and warmed up themselves with all reinforcement of regulation for their new launches in 2018-2019. There was a huge increase in new project launches compared to 2017. Now the supply is more than the demand.
The focus of new launches is shifted to providing affordable housing to a common man. The government’s dream of Housing for All by 2022 appears a lot more attainable now.
Some developers also hope that the affordable housing segment will continue to witness traction with government support like grant of infrastructure status, various central and state government schemes and tax sops.
If you consider the above analysis and the changes that are taking place in the real estate sector, you may expect the following
- People may experience a stable market with a minimum or no appreciation in short-term investments
- With the new regulations, buyers are getting confidence due to transparency in transactions
- It is a good time to think of long term investments which may give you good returns later.
- Affordable home market will improve as developers are getting benefits from the government. They are trying to attract more buyers by giving good offerings
- Supply is more than the demand, buyers can negotiate hard to get a good deal.
I am Manjiri from Ghar Befikar. I provide property management services to NRIs in Pune. In the past year, I got many inquiries to sell properties of NRIs. As per my market study and my experience in this field, I keep suggesting my clients wait for some more time. Let the market get stable after so many changes in rules and regulations in this sector.
Now it is a buyers market. This is a good time to invest rather than to sell the property. You may not get the returns as per their expectations.
My name is Manjiri from Ghar Befikar. I provide property management services to NRIs. This blog is inspired by the current market condition and inquiries I am getting to sell NRIs properties since the past year. I am suggesting my clients wait for some more time as this is not the sellers market. It is a good time to invest as there are multiple good options available in the market.
For more details please contact us.
Visit our website www.gharbefikar.com
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