The buyers will wait for prices to come down.
KOCHI: Demonetisation will have a positive impact on the realty sector in the long run, according to the Confederation of Real Estate Developers of India (CREDAI). There will be a fall in the prices of land and a dip of two per cent in home loan interest rate which will benefit the realty sector, said the annual state conference of CREDAI here on Friday. “It is expected that the existing housing loan rate of nine per cent will come down to eight per cent in the short term and seven per cent in the long term. Land prices also will see a downward trend. This will encourage more people to purchase apartments and the surge in demand will have a positive impact. The situation will be more favourable when the GST will be introduced in April next year,” said Mr K.V. Haseeb Ahmed, chairman of CREDAI, Kerala chapter while addressing the conference.
The buyers will wait for prices to come down. So the builders may reduce the prices by 10 to 15 per cent on an average. But, in the long run prices may go up because of the rise in demand. Meanwhile, Dr. Najeeb Zachariah, secretary-general of CREDAI, observed that the prices of apartments might witness an upward trend in future as the number of housing projects had come down. There will be a demand - supply gap in the realty market as the number of completed projects is less. Justice S. Sirijagan, who inaugurated the builders’ conference, appreciated the efforts taken by CREDAI in improving waste management.
