Builders feel worst is over
If you are thinking to buy a house or invest in property, but have not made up your mind, then 2018 can well be the year to make a move. For most of 2017, real estate sector was in the dumps for a slew of reasons— demonetisation, impact of Goods and Services Tax (GST) and real estate regulatory authority (RERA) to keep a check on builders.
There are many ongoing projects across the city. Coupled with that dismal sale and distressed market, individual or otherwise, properties are aplenty for resale. All in all, conditions are favourable for buyers.
However, some builders feel the year may not be as good as projected. But then, some others do not think so. They say it makes no sense to wait further.
But a buyer has to choose only from existing projects as no new major project had been announced in the city. And no big project is in the pipeline. The only fear is stamp duty and GST would push up property cost by 22%.
Confederation of Real Estate Developers’ Associations of India, Bhopal spokesman Manoj Singh Meek said, it is a year since demonetisation. Actual impact of the GST and RERA would be visible from this year. There is no development plan. Property prices have hit rock bottom. Builders are forced to sell at less than the actual price. There is no employment generation due to which youths are migrating. Parents are also migrating with children after selling properties in Bhopal to buy a house in a metro city. Overall, the real estate scenario does not look good.
Builders estimate 100 feet of commercial property, be it office area or shop, generates employment for three people and poor employment is a major cause for depressed real estate sector.
Chinarr group director Suniel Moolchandani said, “The year 2018 would be good for the sector. Prices have already come down. RERA has helped boost buyers’ confidence. People were waiting for many days to buy property and they will start doing it now.” But GST in real estate is not good, he said.