Namaskar & warm greetings to my dear Customer/Reader Brothers & Sisters,
One question on top of everyone’s mind is whether demonetization will affect real estate rates. The clear answer I can think of is YES. Demonetization will definitely affect property & housing prices. But we need to understand in detail how this effect will come into being.
Real estate market today has two distinct divisions: Luxury & Affordable. The luxury market is largely investor driven & the affordable market is majorly driven by end users. The investors today are in two minds about investing in real estate market.
This may reduce the demand for luxury housing and the possibility that a few developers may be forced to reduce their rates is not unthinkable anymore. But the scenario in affordable housing market is completely different. The customers in affordable housing market are majorly end users who are buying the property to inhabit it.
Even today, the sales in affordable housing market are going strong. The disposability of affordable houses is very high. Numerous investors are now eyeing to shift from the luxury segment to the affordable segment for benefit of a higher return on investment and easier disposability.
Instances of many investors investing their same amount of capital and buying six to seven affordable housing units instead of one luxury home are on the rise today. This has led to a steady rise in demand of affordable homes from investors in addition to the existing demand from consumers.
The last two weeks have seen deposits in banks to the tune of Rs.5 Lac Crores. This figure is tipped to reach 16 Lac Crores in some time soon. This sudden rise in liquidity for banks is a very positive event. The rates for deposits as well as lending will unequivocally see reductions soon. This will explicitly lead to reductions in home loan rates. Fence sitters will have higher loan eligibility and moreover the EMI required to purchase the house that costs the same will come down. This will clearly lead to an increased purchasing power.
The government support for affordable housing is more than ever with unprecedented initiatives. The Pradhan Mantri Awas Yojana has proved to be a huge enabler for first time home buyers while offering benefits upto Rs.2.2 Lacs. The coming decade is going to see rapid urbanization with huge population shifting from rural to urban areas. This will drive the demand for first time home buyers in a big way in upcoming & developing areas like Muthaval in Kalyan.
Just like before, the Haware group facilitates you to pay completely in Cheque. Online booking option has also recently been started in the wake of demonetization, in addition to credit cards, debit cards, net banking. We’re one of the first adopters of this new innovation from our industry enabling the shift of our economy into a digital one.
Muthaval location in Kalyan has proved to be very successful. More than 1000 customers have already booked their homes here in projects by Haware Properties. The construction is in full swing and execution is ahead of targeted timeline. The rates of affordable houses at Haware Pinnacle are already very low and the discount offers are applicable now for a limited time only. The best time to book your dream home is NOW. So kindly accept my friendly advice, don’t wait any longer, visit the site today and to see this project first hand to book your dream home or shop. Kindly come with family and don’t forget to bring your cheque book. We’re eager to welcome you.
Amit Haware, C.E.O. & Joint M.D. - Haware Properties
This story was published on Maharashtra Times. See here: (https://www.facebook.com/www.haware.in/photos/a.1230523010327360.1073741825.431600400219629/1274676992578628/?type=3&theater)