Aftermarket slowdown in the recent times, market sentiments in Gurgaon could revive in 2017. Post demonetization drive, a huge number of investors have emerged in the market with strong cash components (~20-25 Lacs) at their disposal. Although, most of the cash have been put in the banks, but the lower yield of FDs might not be the keep the cash in the bank for very long. A large bunch of this otherwise crystalized capital is expected to get channelized into the primary real estate.
The present reduction in home loan rates will add further momentum to the market sentiments. Availability of liquidity in the market integrated with lowering home loan rates should result in an uptick in real estate transaction in 2016. Although slow sentiments will prevail in Q1, the next quarter could see a possible surge in property prices in tune of ~2%.
New launches will be minimal in the Gurgaon market in 2017, with heightened focus towards completion of existing projects. The unfolding of RERA & its implantation in 2017 is further making developers expedite their construction process to shun any possible punitive action.
Developers who are cash crunch are increasingly partnering with other developers, with stronger annual books to complete their ongoing projects & provide possession within the stipulated time frame.
