Investment Boost to Residential Real Estate Projects in Lucknow
Today, in Indian real estate sector, people might see contradiction in the large investments flowing into the residential realty sector and actual demand for lodging. In the past, there was a similar question that builders kept launching housing projects in spite of the reduced demand or uptake. The reality is that there are always two stories unfolding — the most evident is short-term story.
Presently, the demand for flats for sale in Lucknow may be suppressed due to the dilemma caused by the regulatory bills passed by the central government. However, these bills were essential to make the real estate industry in India a better marketplace. In 2016, the government’s demonetization drive put a dampener on Lucknow real estate. Even as the real estate market in Lucknow was recovering, both GST and RERA caused uncertainty among both the buyers and developers.
Considering over the short-term perspective on end-user side, this turmoil is actually an outcome of an imposed maturing process. The upheaval this process brings along with it can be compared with growing pains a person experiences during adolescence. Nonetheless, the long-term story portrays a different and compelling picture from the perspective of institutional investors.
What Drives the Investments into Residential Properties in Lucknow
Institutional investors have been waiting for transparency and accountability in real estate market across the country, which have arrived with the implementation of RERA and GST. Though, end-user sentiment has started to revive as clarity about these new deployments emerge, the demand for apartments in Lucknow for sale is beyond question. In fact, investors and buyers are looking forward to invest money in residential real estate projects in Lucknow, which remained the most favored asset class during H1 2017.
Now, RERA would ensure that only credible and strong builders with efficient business practices to complete the residential projects within the stipulated time remain in the industry. Moreover, GST will bring a simplified and uniform tax structure across the country, which would supersede the earlier complex and cumbersome tax system. At the same time, the supply chain has moderated — partly due to the non-credible players being forced to retreat from the real estate market, and partly because builders are now more cautious with their property launches.
Over the next 12–18 months, all the indicators actually point towards the return of buyers and investors, who will be inclined to invest money in new or upcoming projects in Lucknow. These people are almost in it for long term and are focused on the optimistic signals for the future, which are now emerging from residential real estate in Lucknow.
Already, market indicators are pointing towards increased sales in the forthcoming festive season due to the improved homebuyer confidence post GST and RERA. Furthermore, the Reserve Bank of India (RBI) has reduced bank interest rates, which would entice buyers to buy apartment in an upcoming housing property in Lucknow.