The trends in Real Estate are changing constantly with changing requirements and family structure. New developments such as the Budget and Demonetization are changing the face of the market. The demand is steadily rising after a lull in the market. Let’s us examine what is in store in the near future.
Prices will go down drastically, in terms of the residential aspect. Prices largely remain unaffordable in metros and tier 2 for residential purposes. The prices are changing as per local requirements to ensure that they are affordable to takers in the market. There is a rise in demand in upcoming cities and towns in terms of commercial real estate.
The Amendment of the Real Estate Bill will keep the protection of customers’ interest in mind. Hence, in 2017, the builders will become extra careful in making sure that completion takes place on time and gets handed over as agreed upon. There would not be any delays in handing over the houses; as otherwise, the builders have to bear a fee for the delay.
The main effect of the Bill is that the deals will become more transparent which will encourage more transactions taking place. Demonetization is another major reason for a promising year ahead. There is a higher degree of transparency with more parties opting for cashless transactions. This will ensure accounting of transactions and legal registration.
There were major expectations and a frenzy of speculation with the Budget being revealed earlier than the scheduled time. There were many voices that speculated that tax incentives would be introduced for medium-end buyers of real estate. But the Budget has revealed no such alterations on the tax incentives for real estate.
Similarly, there has not been any increase in the House Rent Allowance (HRA) that helps salaried individuals who live in a rented property make claims. There was some talk that the deductions in terms of HRA will increase. However, the new Budget has not revealed any such changes. This will curb the demand for higher-end apartments, as the Tax deduction cannot be claimed on HRA without raising concerns.
Another major change is towards gated community. Increased people in Chennai are looking towards properties that get instructed in the format of a small township complete with a grocery store and perhaps a mall within the complex. The trend towards such houses is due to the multiplicity of factors of convenience where every amenity from water to the gas pipeline to electricity etc. gets taken care of by the housing society. The security needs are also met with agencies providing maintenance staff and security guards. It is an ideal place for children to play in the evenings and for the elderly to get together as well.
Many changes due to the Budget have also brought about many recent developments in the Real Estate world. The Budget has made a lot of people happy with the reduced Capital Gains Tax and Notional tax. There are many different changes in the mentality of the common folk. Home-buyers are basking in the glory of reduction in prices making the real estate market more affordable.
Women are looking to purchase households as individuals. Many salaried and working women are looking to live independently. They are looking to buy Real Estate within the city in a close proximity to work. They’re unable to find houses in existing housing societies due to the stigma of being alone. These women are looking for new and upcoming projects in which they can invest.
Moreover, there is a requirement of investing in an additional property for renting out. Many people are looking to diversify their portfolios by looking for different properties both with and outside the city. This has thrown open the market with a constant increase in demand.
Looking at all these recent developments, the real estate in Chennai will pick up momentum and continue to steadily and gradually increase in value.