The realty sector if India had high expectations from the union budget of 2015. According to popular news sources, the budget was a “let down” where property business is concerned. However that is not true. Even in the absence of any major reforms presented in the budgetary session, the government has done enough to support the property business and allow its growth. This is the reason why after almost half a decade of recession, the real estate markets in India have opened up to new reforms. Over the years, the business had been suffering across all territories. Even the demand of property in Delhi was undergoing a dip in sales- considering how much in demand it is. That being said, the property business in India is back on track and is expected to grow continuously in the coming years.
The expectations and the efforts behind the scene
The property markets of India started changing. The era of “depression” had led to the investors and stake holders take decisions which were meant to transform the business. Even in the beginning of the year 2014, it was expected that the property business would improve in the times to come. The anticipation of the installation of a new government already had the markets kicking dust and picking pace. However the sales figures initially were dismal. There was no improvement in the situation it seemed. But then the end of the year 2014 saw a remarkable increase in the launch of new projects across the country.
The reason for this seemingly contradictory observation primarily lies in the fact that the property business in India is still at a nascent stage and remains unstructured. Just like it has been with all the developing nations, there is a “storming” process whenever the opportunities present themselves. The stake holders push for delivery of results using all means possible in the absence of a comprehensive structure. This is what happened with the property markets in India as well which are not consolidated. Therefore even when there was anticipation of growth, there was no way to measure it outright. Additionally, the overall information related to sales could only be accumulated months after them actually happening. Hence while all the information sources were focussing on sales, the best parameter to measure change was possibly different.
It was revealed that the country had witnessed a foreign investment of almost $4.8 billion till the third quarter of the year 2014. This was an indicator of the time and change to come. This is the reason why the government also relaxed the norms for FDI way back in November 2014; well ahead of the budget session. This move would yield collaboration with the foreign players who are interested in investing in the property markets of India.
The provisions in the budget
The union budget of 2015 offered rebates on interest rates of housing loans. This would help the buyers purchase homes more easily- whether they want to buy property in Delhi or elsewhere in the country. There were no specific provisions for investors; but the earlier moves made by the government is undoubtedly going to help.
The property business in India indeed has taken off and it is expected to grow at sustainable pace in the times to come.
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