Home prices to pick up in Q1 of FY18, perfect time to buy: House of Hiranandani Chief
New residential project launches would get impacted in the first quarter of the financial year due to the implementation of new rules (GST rollout RERA), so the demand for available inventory and ready-to-move-in homes will, therefore, increase. This is the perfect time to buy property, Surendra Hiranandani, Chairman & Managing Director, House of Hiranandani said in an interview to Moneycontrol’s Sarbajeet K Sen.
It has been several months since demonetisation. What has been the impact on real estate?
Demonetisation is undoubtedly a landmark event in the history of our economy. While it has led to short-term disruption for around three months, it indicates a favorable change for the real estate sector.
The primary residential market and projects undertaken by credible and reputed builders are not affected. Transactions in these markets are broadly financed through legal channels of banks and housing finance institutions providing home loans to buyers. Projects in cities where there is a cash component will only be affected.
In terms of correction in land prices, farmers today are unlikely to part with their holdings at lower prices. They have immense holding capacity and patience to see this through and will sell only when the price matches their expectations. Alternatively, they could factor in tax payments to increase prices in the near term.