Fresh innings for Patna real estate!!

Things are looking up for real estate sector in Patna with proposed implementations of Real Estate Regulatory Act and Goods & Services Tax along with lower home loan interest rate regime. This sentence is qualified by the increase in number of queries on our Patna property portal www.buysellrentpatna.in. The feel good factor is also being supported through fiscal benefits offered to taxpayers and home-buyers in Patna. The sentiment is expected to turn positive and instill confidence among home-buyers, which is extremely important for the revival of the real estate industry in Patna.

The Union Budget's gift of infrastructure status to affordable housing is a game-changing move that will open up more institutional sources for developers in Patna to raise funds at competitive price. The budget has also given leeway to developers in Patna to build bigger houses and extended the time of completion of affordable housing projects from 3 years to 5 years. We strongly believe these moves will encourage leading real estate players in Patna to enter the affordable housing segment going forward thus creating a lot of potential for institutional funds to participate in Patna real estate.

A lot of churning will happen in the times to come because of the implementation of various policy changes and it is important to see how developers in Patna recalibrate their businesses to the changing environment and whether buyers in Patna capitalize the opportunity of the various reforms and change their status quo position of “wait and watch” to buyers.

In the first half of 2017, the residential sector in Patna has been largely muted and there is pressure on prices of Property in Patna. With consumers in a wait and watch mode, demand could be subdued due to a mind-set that property prices could undergo reduction along with a substantial loweringof home loan interest rates. Since buying a house is a discretionary need –a need that can be postponed, it is anybody's guess that the real estate sector in Patna will be the slowest to recover from the impact of new regulations vis-à-vis other sectors.

The after effects of demonetization coupled with legislations like the RERA, GST bill and Benami Transactions (Prohibition) Amendment Act,2016, will further increase transparency and reliability within the Patna realty sector. Furthermore, this will also see a boost in institutional funds flowing into the sector at competitive rates, which will enable Patna real estate to come out of the woods.

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