What’s Trending in the Real Estate Market This Year?

These trends are sure to change the real estate market in the year 2017 and beyond. Global capital flow into the real estate market is on the rise and will increase consistently. India is in the fourth position in developing Asia for FDI inflows as per the world investment report 2016 by United Nation’s Conference on Trade and Development, and that is the highest levels of endorsement. Indian real estate has managed to attract $32 Billion in private equity till date.

The builders and developers are likely to change their business models completely – throughout the year 2016, the number of new constructions in Thane were much lower the units sold. Almost all the states were keen to see the launch of RERA, and now all of them will surely fall in line. The RERA happens to be a landmark law and will surely enforce the much-needed transparency and accountability on the part of the builders, and the home buyers will definitely benefit from it.

Not just RERA, there are other acts and bills passed that will directly impact the Real Estate sector. For instance the Goods and services tax(GST) and the Benaami Property Act. Residential demand os expected to pick up only towards the end of 2017. All of these new reforms are certain to affect the realty business of flats in Thane west.

The sun also seems to be rising on affordable housing finally! – Affordable housing in the country is finally set to get the much-needed infrastructure status. Until the year 2019, one crore houses are to be built in rural India and this vital sphere will also witness cheaper sources of finance that include the external and commercial borrowings. The housing loans too, are being remodelled by the national housing banks which can again give a lot of boost to the real estate sector. Much before the budget 2017-18, a new credit linked subsidy scheme was announced for the middle-income group with a provision of Rs 1000 crore in 2017-18. The tenure of the loan repayment was extended from 15 to 20 years under the Pradhan Mantri Awas Yojana and the budget that was allocated under the PMAy scheme also increased from Rs 15000 crore to Rs 23000 crore for rural areas.

The affordable housing had some qualifying criteria and these to were revised to 30 square meters and 60 square meters on the carpet instead of the saleable area in the four main metros and non- metros respectively. This actually tends the size of the affordable housing market, all throughout India.

With all these changes that are almost implemented and some of which are yet to be implemented, the sale of flats in Thane west is surely geared in for a revolution like never before. Now we have just to wait and watch on the repercussions of them all.

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Mumbai Metro Route – Impact on Real Estate

Mumbai Metro is touted to be a game changer for the real estate market in India’s financial capital. It will not just solve the traffic congestion; the metro will also lessen the pressure on the suburban rail network.

With the huge metro development program, the Mumbai metropolitan region has witnessed a massive facelift. Real estate experts predict a never-seen-before impact on the real estate sector in the regions that are connected by the metro.

In the completed route from Versova to Andheri to Ghatkopar spans 11.4 km which happens to be Mumbai’s first metro rail network contains 12 stations from Versova to Ghatkopar. This entire route has already witnessed a 10 to 20% appreciation in its capital values since inauguration in the year 2014.

There is an ongoing metro route that is being constructed in between Dahisar and Mankhurd. This stretch will have 2 phases.  – Line 2A and Line 2B.  The construction for Line 2A began in November 2016 and is slated to be completed in the year 2019. This route is supposed to be 18 km long and will have 16 stations. When this line completes, it will have a significant impact on the sale of 3 bhk flats in Thane. Some of the adjacent areas have already seen a hike in the real estate prices from 2015 to 2016 with Shashtrinagar seeing a year on year appreciation of 12% in the realty rates. Rates in Shastri Nagar as of October to December 2015 were Rs 20,800 whereas in October to December 2016, the rates had already increased to Rs 23,300.

The construction work for Line 2B will begin by October 2017. This would be a 23.5 Km metro corridor with 22 stations.

Another line is Line 3 that would connect Colaba – Bandra and Seepz. This would be the first underground metro project of Mumbai. It would be 33.5 Kms long and would consist of 27 stations. The construction of this metro project began in October 2016 and is slated to be completed in the year 2020. Some of the major localities linked with this Metro project have already seen a 2 to 4% hike in realty prices. The Santacruz East area has seen 4% realty price appreciation wherein October to December 2015 the price was Rs 18,105 per square feet, and in October to December 2016, the price rose to Rs 18,827 per square feet.

Another proposed metro project in the city would be connecting Wadala in central Mumbai to Ghatkopar, Mulund, Ten Haath Naka and Kasarvadavali. This project would consist of 32 stations. This project too is estimated to impact the sale of 3.5 bhk apartments in Thane hugely. Mukund has already seen a realty price appreciation of 7% in a year. Between October to December 2015, the prices were at Rs 13,090 and after a year, the prices rose to Rs 14,025.

These are the numbers of just a few places, the real impact can only be seen and will only be able to be gauged after all the metro projects are completed. So, if you are planning to purchase 2 or 3 bhk flats in Thane, it is time to do it now before these infrastructural developments happen.

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