Waiting For The Real Estate Bubble To Burst

If you have been a part of the Indian real estate discussion boards, the pessimism must have gotten to you by now. Everyone seems to be preparing for a severe slump in the real estate market when all the residential property developers Noida or those in other parts of the NCR will cut off house prices by a big margin giving sharks (read: black money owners) a chance to own several properties for cheap and sell them off at higher prices when the market starts climbing after the slump cycle. What amuses us is that such predictions have been around for more than we can remember. In the beginning of 2009, some people started spreading rumors of a supposed Bubble Burst in the real estate sector.

False Expectations and the Harsh Truth
As it should have, the discussion had its effect on home buyers. They have been waiting for the bubble to burst, when the prices will be dirt cheap as compared to what it is today and they will be able to buy houses in bulk. Unfortunately though, the bubble has been thickening all this while and instead of bursting, the bubble has reinforced itself.

What people forget is that residential property developers Noida have their well wishers working in favor of them, and for the interest of the average home buyer. Besides, at the top of the hierarchy is none other than the RBI. The policy lending rates are increased on time to contain inflation, which keeps the economy balanced out. Policy makers and bureaucrats of the country are doing their bit in protecting the real estate industry from degenerating into a free-for-all market where foreign money (neither FDI nor FII) will flow in to seize advantage of the depreciating real estate value.

Even if the bubble burst, which we are sure not to happen anytime soon, businesses will overpower the average salary earner looking to own a house of his own. There was a time, not longer than five years from now, when businesses drove real estate. Today the power is with the salaried class. Unfortunately, the situation seems changing fast against the monthly salary earner. Possessed with greed, potential buyers are deciding to wait for some more time expecting that the prices will for once come down, whereas the prices have gone up significantly quarter on quarter, every year.

residential property developers Noida does not see any chances of that happening, not until 2014 or even later. The truth about real estate prices in Noida or Gurgaon or anywhere in the NCR for that matter is that, it is not going to decrease. Instead of waiting for a dubious future, we advise you to begin researching real estate developers in Noida and Gurgaon before things go way out of your reach.

New Government Initiatives To Boost Real Estate Sector In India

At the Government level many new policy initiatives have been taken recently to boost the real estate Property in India . These policy decisions will lend a stimulus and impetus to the industry. It is beyond doubt that the new initiatives will unlock the potential of the sector. Also, along with the stimulus package announced by the Government, the Reserve Bank of India (RBI) has taken a definitive step whereby banks are allowed to devise new schemes beneficial to the property sector.

As part of the Government initiatives to boost real estate boom sector India, RBI has declared concessional schemes for the real estate sector. Such initiatives include:
Urban Land (Ceiling and Regulation) Act, 1976 (ULCRA) repealed by increasingly larger number of states.
In case of integrated townships, the minimum area to be developed has been brought down to 25 acres from 100 acres.
51 per cent FDI allowed in single-brand retail outlets and 100 per cent in cash-and-carry through the automatic route.
Full repatriation of original investment after three years.
Minimum capital investment for wholly-owned subsidiaries and joint ventures stands at US$ 10 million and US$ 5 million, respectively.
100 per cent FDI allowed in realty projects through the automatic route.

Further, in its endeavour to initiate new policies to boost the real estate sector in India, the Ministry of Commerce and Industry, Government of India, has taken steps to reduce the time taken to develop special economic zones (SEZs) by simplifying the procedures to get the tax-tree industrial enclaves notified. Now developers can easily get their land classified as an SEZ at the outset itself by producing title deeds to prove their ownership. Again, the Government has announced several concessions in the Budget 2008-2009.

New Government initiatives to boost sector of Real Estate India include granting a tax holiday on profits from initiates in the financial year 2007-2008. In order to enjoy this benefit, the housing projects should be of the affordable housing unit type of 1000 to 1500 square feet. Another condition is that such projects should be completed by March 1, 2012. Further, the Finance Ministry has allocated US$ 207 million to grant 1{8dac5dcb9f942b09754d29d206f8ecad2fe1c20701ee3d2765cee79f805470e6} interest subsidy on home loans up to US$ 20, 691. In order to avail this benefit, the cost of the home should not be above US$41, 382. It is believed that these initiatives will be add further impetus to the real estate sector in the country.