What Is In Store For Homebuyers In 2020?
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As we enter a new year, we expect to see positive changes in India's real estate sector. In this article, we discuss changes that homebuyers can expect in major property markets across India.
Rates may move upwards in some markets
The kind of price correction buyers expected in a slow moving market didn’t really happen on the ground. While some overvalued property markets did see some correction, rates simultaneously increased in some other markets, even if marginally. PropTiger.com data for instance, shows property values appreciated by 40 per cent in Hyderabad in the past five years. The upward move is likely to continue in Hyderabad and other cities including Bangalore and Mumbai.
The kind of price correction buyers expected in a slow moving market didn’t really happen on the ground. While some overvalued property markets did see some correction, rates simultaneously increased in some other markets, even if marginally. PropTiger.com data for instance, shows property values appreciated by 40 per cent in Hyderabad in the past five years. The upward move is likely to continue in Hyderabad and other cities including Bangalore and Mumbai.
Banks likely to offer better home loan deals
The RBI may have dazzled consumers with its rate cut spree in 2019 by reducing its lending rate by 135 basis points. However, the rate transmission by banks has been shockingly slow. Data show that the differences between rates banks lend money from the RBI and the rate at which they lend it consumers is highest since 2012. Considering they are obliged to play their role in reviving the overall economy through demand support, banks are likely to bridge this gap in the coming year. As a result of this, buyers will get access to cheaper credit.
Number of banks set to reduce
With more and more non-banking financiers staring at uncertain careers, the number of bankers in the system is set to reduce remarkably. This would ensure the survival of only the fittest, giving home buyers a reason to believe housing finance could become more affordable in 2020.
More housing units set to reach the market
More housing units set to reach the market
After the launch of the RERA, builders are seen shifting their focus on project completion while new launch plans have taken a backseat. If liquidity was an issue, genuine builders would find help from the government through its Rs 25,000 crore alternative asset fund. Consequently, a large number of housing units are set to be delivered in India's major housing markets in 2020.
Also, in high-profile cases such as Japyee and Amrapali, the Supreme Court may pass a decisive verdict and handover the project completion task to state-run NBCC. This move would bring relief for thousands of troubles buyers who have been waiting for their homes for years now.
Improvement in market sentiment
As real estate authorities in states through their pro-buyer stance transform the market into a more consumer- centric one, buyer sentiments are set to get a boost in 2020. This would trigger fresh activity and owing to this, sales numbers might improve. Those willing to make a move in this market would certainly reap the benefits of low interest rates and high ready-to-move in housing stock.
- by Sunita Mishra
Source : PropTiger
