March 2016 will bring hope for property in India

March 2016 will bring hope for property in India

 The decreasing interest rates and rise in the nation's investment climate will improve the real estate market by the end of March 2016. This will definitely provide relief to the debt-ridden builders. The property reduction sector definitely have played a major role in the reduction of housing loan interest rates.

The Reserve Bank has asked the banks to cut down the interest rates of home loans and other borrowers. This is done to benefit the lower and middle income segment. It is being said that the builders with greater mix will be less affected as their customers are less sensitive to the interest rates of the market.

There were many schemes that the developers were offering to increase the demand of property in India. Also, there is an expectation of increase in the GDP from 7.4% to 8.3% this year. The developers mostly responded to the easy payment plans for various products. These payment plans basically requires 20% of the property price that is to be paid instantly and the remainder at the end of the development, generally various years later. This has elongated cash collection cycles and added to the higher controls.

Around 20% of the sales over the past couple of years were financed by easy payment plans and even observed the long cash collection cycle that will continue to weigh on the developers' balance sheet in the upcoming terms.

Definitely the property in India is looking ahead for a bright and profitable year. The developers are hopeful that this year will bring along good flow of money and more people will invest in property in India. People not only from India but abroad are also investing in these properties as these are catering to  their demand and many of these projects come under the affordable homes category which again is a plus point for buyers. These projects have an edge over others as they have world-class amenities and other facilities to offer to the residents of these localities or areas.

While the prices of the India property have not gone down explicitly, the stagnation in inflation and capital values working together have caused implicit price correction. There is an expectation of positive impact on the market with the reduced interest rates and the festive season. Therefore, the overall scenario will be positive and the Indian real estate market will remain positive in the short to medium terms. 

Source : articlesbase.com