Truely gives out the reasons why the property market / home sales are down.
Just add one more : The investor class with black money - does find a way to invest - since the sellers are not taking hard cash these.
When / how will the markets revive : 1/ Cost of the homes come down by 25 to 40% depending upon the areas. Mumbai / Delhi NCR - it is 40% or more be more. Other places little less but significant. 2/ A true RERA is implemented. The RERA is current forms is an eye wash. 3/ Builders are punished heavily - for non-timely delivered projects. If it means - the proprietors properties / his kins properties mortgaged - so be it.
Prices of real estate are beyond reach of pocket, Builders overcharging more then 100% profit, non delivery on time and multiple sales of single house to many,fraudlent builder,political protection to Builder loby despite RERA are cause.
People have lost faith in Bulder community.Many developer builders do construction beyond regulators permission even today and cases pile up in courts.
It is alarming to note that the housing units sales have shown a hefty decline of 8% on CAGR since 2011. The article does not mention the steepest decline in home sales during 2016-17 due to the Demonitisation which is rumored to be in the region of 15%-20%. Economic downturn, job losses and fear of job losses, failure to deliver on time by the developers, have all contributed to the worsening home sales scenario. Even those who are well placed to buy houses for investment purposes and tax benefits are putting of such purchases in view of the unclear market prospects. It is time the government wakes up to the situation and does things to reassure investor confidence and bring in discipline among developers so that they do not cheat the gullible buyer with delays in delivery.
