KOCHI: A month ago, Prime Minister
Narendra Modi announced the demonetisation move to curb black money. After initial hardships, the
real estate
sector that felt cash crunch pinch is optimistic that business will become better in the coming days.
In the current scenario property buyers have held back their decisions.
Confederation of Real Estate Developers of India
(CREDAI) Kochi president
J Paul Raj
said that buyers believed that the existing situation would change and better conditions would emerge. "People are awaiting for positive indications from government departments and banks, and these will be a catalyst, prompting change," he said.
Even though the
Reserve Bank
(RBI) did not announce any change in interest rates, relators and builders continue to remain hopeful that government departments and banks would come forward offering incentives to home buyers like reduction in stamp duty, relaxation in income tax and interest rates and redefining eligibility for availing loans.
"The fact is food, clothing and housing remain the primary requirement of people. As the number of families increase, the need for housing in affordable segment also increase. A new couple would always consider investing in a new house within a span of 5-10 years after marriage. It is certain that market would always continue to grow," he said adding that a steep hike in salaries of public servants following the implementation of pay commission recommendations would also give a boost to realty sector.
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