The Future of the Real Estate Market in 2016
Real estate is an important market in the country. As the year draws to close, potential home buyers and individuals looking to invest in property need to analyze current market trends and projected growth before making any purchases.
Over the course of the past two years, the real estate market has been slowing down. The coming year may bring some respite to weary developers, as there are signs that housing markets will show improvements in 2016. Some of the changes that may occur are as follows:
- The housing market will stand strong in the following year. It will show some signs of credit easing and this will also help the nation on the economic front.
- According to a report, the sales of existing homes will increase by nearly 6% in 2016 from 2015.
- The prices will remain the same or show a marginal increase. Interestingly, 2016 will still be considered as the year to have the slowest rate of price appreciation since 2011.
- The Reserve Bank of India (RBI) has slashed interest rates, which will lead to the lowering of interest rates on home loans offered by many banks. This is expected to help boost the sales of properties.
- Builders are coming up with innovative ideas to provide a superior experience to customers. They are expected to introduce new methods of making payments for the ease and convenience of home buyers.
- A boom in the property market will also help to boost the gross domestic product of the country. This will also help to lower the unemployment rate.
- As is natural, some regions will see a higher impact of the market changes than others. Metro cities like Mumbai will see a prominent impact on its property market. There will be a growth in the sales of 2 BHK and 3 BHK flats in Mumbai Suburbs.
- The government has also launched its smart cities project, attracting many foreign investors to India. Higher investments and Foreign Direct Investment (FDI) flow will help further fuel growth of the Indian real estate market.
- The rise of luxury apartments will be witnessed in smaller cities as well.
- Developers will also focus on providing affordable houses, by cutting down on certain amenities.
- Despite all the positive indicators, the market will have to overcome some global challenges like financial market volatility and an economic slowdown, among others.
All of these developments indicate a bright future for real estate in 2016. As India’s economy continues to grow, both real estate developers and financial institutions are inclined to make home purchases easier for consumers, which will only further economic growth.