An Overview of the Shift in Real Estate from 2016 to 2017!

The year 2016, if we look back, was an eventful year. Now, as we have stepped into 2017, it becomes critical to test the mood of buyers or investors for their aspirations and desires. Here are some of the important points that describe why and how real estate is expected to make turnaround in 2017.

1. 2017 will either stabilize the residential property prices or will escalate slightly: Past few months were static for the property prices as they remained stable and it can be gauged that this trend will continue. More than 25% of the property buyers expect the property prices to be stable in 2015. They feel that the past few months’ trend will follow this year too. More than 45% buyers of residential properties feel that the property prices will rise this year. Most of them expect it to appreciate even up to 10%. The buyers will experience some kind of relief in 2015 because on a yearly basis, more than 10% increase in property rates is expected. This is only one side of the story, however, more than 25% of buyers are expecting the property prices to fall from the present level. Among them, 17% are advocating a fall of 10%.

2. 2017 Will Keep the Same Property Budget for Home Buyers: It is expected that in 2015, the Indian economy will experience a slowdown with a negative trend shown through all economic indicators. The average buyer will not reduce his will of purchasing property because of this slowdown in 2015& 2016. His or her budget for 2017 will not get affected. Moreover, this will reinforce his/her confidence to invest in real estate more as an asset. As per data, 25% of the buyers have cut their budget down to allocate and another 19% of buyers are ready to spend more for purchasing property. Overall, if the property rates will be static, it will attract buyers in 2017.

By looking at the above two parameters, we can expect the property rates in India to rise a bit in 2015. With the rising prices for homes, people will like to invest in property for future sale rather than to retain the house. It is also expected that the average rates for homes will be somewhat around 50 lakhs. However for the ones who are looking for a luxury housing, the property rates will be above 2 crores. In 2017, there is asurge indemand for serviced apartments too.

But again that counts a little part of the total home buyers, i.e. 2-3% only. To sum up now-a-days people look at the real estate market more as an investment option or an asset rather than a necessity.