Improving home affordability amid 15-year-low interest rates and steady prices in India helps kick-start a recovery of the nation’s residential property market.

“Real estate has emerged as the most resilient asset class today and we see potential for more consumers to pivot towards home ownership in the longer term. In tandem, ongoing work from home arrangements are pushing developers to become more flexible and give homebuyers the option of creating a study room if need be.”

New laws may help: Timely completion of projects, quality of construction and transparency were some of the biggest concerns for home buyers in India. Several news laws, including the Real Estate Regulation and Development Act of 2016 (RERA), another law to prevent property transactions on fictitious names and bringing real estate under the goods and services tax regime have brought greater transparency in what was earlier a largely unregulated sector, analysts say.

The act, RERA, “has fundamentally changed the way the business of real estate is conducted in India. The compliance requirements and disclosure norms that developers need to adhere to today have brought down the risks for end-users and investors and paved the way for a stronger and more sustainable market”. The “structural shift” brought about by it is a positive development for the market.

Source: www.spglobal.com