Real Estate went through a rough phase in previous years. Demonetization followed by NBFC Crisis has affected the real estate industry and maximum builders dealing with apartments in Bhubaneswar were on the verge of bankruptcy. This presents a massive opportunity for genuine builders with already developed flats in Bhubaneswar to take up the market share and expand in a linear way. Several Reforms like RERA, have led to maximum builders either being bankrupt or leaving the business leaving homebuyers in puzzle. As a result strong builders have become more stronger and weak is eliminated out of the business.
Several measures were declared by the government for the revival of non-banking financial companies (NBFCs) from the ongoing debt crisis and liquidity crunch. Rupees One lakh Fifty Thousand additional tax benefit for home buyers by Government upto 45 lakhs, is a positive move. If an individual takes a loan till March 31, 2020 then interest deduction upto Rs 3.5 Lakhs is available. These decisions were taken to boost the demand in the near term of real estate industry.
Reducing corporate tax,also plays a great role in improving the sentiment of economy. More focus on affordable housing to achieve ‘Housing for All by 2022’
The Government has a target to achieve more than 81 lakh houses under the Pradhan Mantri Awas Yojna Rural Scheme. Consistent efforts by Government to boost the real estate sentiment of home buyer is visible through these strong reforms. Granting Infrastructure status to housing segment is a big positive move by the government as it will attract more FDI inflows towards this sector. All these steps taken, by the government indicates a positive mindset towards real estate sector which eventually helps buyers for choosing apartments in Bhubaneswar.
To improve liquidity, and relax the home buyers RBI recently cut 5 basis points REPO Rate for 5th consecutive time. Homebuyers are still not getting the benefit are banks are reluctant in passing the rate cut to the customer. This has further slowed down booking of flats in Bhubaneswar and all over the country.
Though the short term situation of the economy appears grim, we cannot overlook the fact that India is a huge diversified geography where growth is a given factor. Economies Of Scale has a leverage to play here. Eventually Real Estate would be out of woods, and people will start buying homes again. Only the strongest of players would survive and thrive in this regularized market after RERA.
This provides a massive opportunity for genuine builders to present their latest projects by building top notch apartments in Bhubaneswar and capture the market vaccum created by other incompetent builders.
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