Properties in India

There will be more property in india in the future than there are today. The government's mission to provide housing for all of the urban poor and homeless will lead to the creation of a large number of homes for many who do not have any today. Gradually as cities in India begin to take on a tidier appearance the value of the houses in these cities will also rise in value. 

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Renting Benami Property in India to Sections of Society

Benami property in India may soon be put to good use by the central government. The plan by the government is to monetize the confiscated Benami property in the country and to erect affordable houses in its place instead. This is expected to tackle the issue of housing shortages in the country by building a larger number of housing units in towns and cities.

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The Benami Properties Act

Additional options are laid open by the implementation of the Benami Properties Act which pertain to renting properties to Below Poverty Line (BPL) families.  Within the rules of the Benami Properties Act would be added a provision, which would allow the government to rent out properties that cannot be confiscated. The properties under this added provision of the Benami Properties Act could be rented by the central or state government’s as rental housing for Middle Income Group families, Lower Income Group members of society, or Economically Weaker Sections. The decision as to which section of society such properties should be rented to would depend upon the location of the properties and upon the suitability of the properties for the groups mentioned. Real estate in India will become further demarcated based upon the prestige of the mentioned properties. 

Deciding To Whom to Rent

While Benami property in India is found in many parts of the country, they can only seriously be rented to MIG families if such properties are at localities that this segment finds favorable. A middle-income group family would have more means at their disposal and hence a larger range of selections from which to choose a new home. Such families would expect reasonable access to educational facilities and to medical facilities.

A lower income group’s selection pool from which to choose a new home will be more restricted than that of a MIG family. Such families may choose to live in a house that does not have ready access to a good school or college in the vicinity and they may not require real estate in India that provides adequate access to medical facilities either.

Families that are a part of the economically weaker sections of Indian society may simply be pleased to have a roof over their heads and enjoy living in real estate in India that provides privacy. If such a locality is in an upmarket locality then member of the EWS may benefit from greater access to important civic infrastructure.

Demonetization Soured Positive Sentiment Regarding Property in India

The number of new launches of property in India has dropped dramatically since demonetization took effect on November 9^th of last year. New launches from October to December of 2016 fell drastically as a result of demonetization.  Builders across the country today have to be more cautious and learn to adapt to a more dynamic and rapidly changing environment. 

Before Demonetization

Before November 9^th of last year, all looked rosy concerning the real estate market in India. To any objective observer the real estate market in India looked to be on the mend with a good future ahead. The festive season was nearly in full swing and it was expected that realestate in India would benefit immeasurably from the positive sentiment across the country.

After Demonetization

Once demonetization was announced, it dealt a giant blow to prevailing positive sentiments across the country. Real estate transactions dropped considerably once demonetization took effect. Housing demand across the country also fell after demonetization was announced.

Builders Post Demonetization

After demonetization was announced, builders decided to adopt a policy of wait and watch in an attempt to judge market sentiments. They decided to delay launching new projects. Reputable real estate consultancies have stated that the end of last year saw the fewest number of new launches since 2010. Hence the number of new projects in India launched last year was the lowest in nearly six years. Sales volumes also fell by nearly forty four percent and the number of new launches dropped by sixty one percent post demonetization. If not for demonetization, last year India’s real estate sector would have ended on a high note. Real estate sites in India registered far lower traffic volumes post demonetization. 

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Demonetizations Impact Upon Different Cities

The two of the largest real estate sectors of India bore the biggest brunt of demonetization. New launches in the NCR fell by nearly fifty eight percent and new launches fell by fifty three percent in the Mumbai Metropolitan Region after demonetization soured market sentiment.  

Bangalore, long believed to be resilient to real estate trends, also suffered, although not as much from demonetization as from the NGT order on lake beds and the civic bodies drive targeting demolition of encroachments upon storm water drains.  

What’s Ahead In 2017?

Property in India is poised for better times ahead say market oracles, the second half of 2017 is expected to be a good year for real estate in India. Real estate in India in the second half of 2017 will be driven by stronger market fundamentals than were present pre demonetization state experts.