The past few years saw the realty sector going through tough times. It was only in the first half of 2016 that the sector started to have an uptrend with seven per cent jump in volumes with price corrections, resulting in better sales and a reduction in unsold inventory. The accompanying trend of buying what is known as second home or vacation home also saw an upturn for upcoming ventures in sarjapur road
Demonetization adversely influenced upon the complete realty sector and for some time all commercial activity cane to a grinding halt. This made 2016 the worst year in terms of sales performance. The last quarter of 2016 saw sales go down by a steep 44 per cent while new launches reduced by an unprecedented 61 per cent.
Currently, sales of new homes built by reputed promoters and traffic at all major realty portals are back to their pre-demonetization levels.
Second homes market
Second homes are bought by those who are looking for an extra source of income by way of rentals or for a getaway from the humdrum of city life. With extra cash vanishing from the market post-demonetization, the demand for second home has clearly come down.
Currently, buyers with legal incomes and intending to possess second homes are opting to buy through legal channels. But even amongst them many are waiting for the market to settle down and prices to decrease villa plots for sale in sarjapura road.
Union Budget’s impact
Union Budget 2017 also dealt a severe blow to the second home market as tax benefit was restricted to Rs. Two lakhs in the place of the entire interest paid on the purchase of second home, even though there is a provision to carry forward the losses in eight consecutive financial years. Even with this carry forward facility, it will still be a loss-making venture for those trying to buy a second home with loans, because the interest on loans as well as on rental income will become taxable .
Demonetization has resulted in a 10-15% price correction and more can be in store. It is felt that implementation of RERA will result positive trends in the real estate market. Buyers have started coming back to the primary sales market and sales enquiries have started flowing in consistently for plots in sarjapura road.