‘Real estate to witness jump in demand’
|Source: The Hitavada Date: 23 Mar 2017 09:49:59|
A FEW months ago, people were confused and uncertainty had creeped into their minds during demonetisation. This phase of uncertainty has come to an end, for the lull in demand was of psychological in nature and the demand for housing had taken a beating at that time. Since then, things have improved and banks have given a huge boost to the real estate sector by lowering interest rates.
“It is expected that the real estate sector will perform and witness a healthy growth as banks have cut interest rates on housing loans,” said K S Cheema, Chairman of Diamond Estate Builders and Developers in an tête-à-tête with The Hitavada on Wednesday.
Now, the demand for housing was vibrant and enquiries were pouring in at most offices of the builders. “We expect the real estate sector to grow by atleast 25 per cent during FY 2017-18,” he said. Real estate sector is one of the most preferred destinations to park surplus funds compared to gold and share market due to uncertainty and fluctuation in rates. The reduction of EMI by Rs 2,000 to Rs 3,000 would help the working class buy bigger homes and choose from a wider choice. Now, the real estate prices had bottomed out and stabilised with no scope of further coming down. Furthermore, it was expected that interest rates would gradually drift lower to about 8 per cent. Most people would also be lured to buy homes as the Metro Rail project, cement roads and basic infrastructure were being created in the city.
He said that in order to solve the housing problem, the interest rates should be lowered to 5 per cent. There would be no need to give freebies and subsidies. The Government should learn from international experience as many countries like the Middle East lent money at 3 to 4 per cent and the US at 1.25 per cent towards housing. The growth in the real estate sector would help create demand in more than 300 industries which were related to the construction industry. Also, the Government should form R&D centre for creating new technology and help builders construct buildings at a faster pace.
Cheema has a vast experience of 15 years in completing multi-billion dollar projects across the world. He was previously working for Omzest as the Group Executive Director in Muscat.
Diamond Estate has launched Diamond One project, an ultra-modern luxurious apartment scheme in Dhantoli. The prime objective is to provide hassle-free living to the residents. People will have pride in living in such a building which offers chauffeur service, house keeping service, electric and plumbing service, etc at their fingertips.
“We are introducing a dream destination with futuristic features for the first time in the city,” he pointed out. The project is slated to be ready by the end