Good News For Developers / Builders & End Users
Primary Market Real Estate Vs Secondary Real
Estate Market (Resale)
Primary Market (New
- ·Primary Real Estate Market will have Positive
Impact and likely to grow by 15-20% in coming year 2017 due
to low in interest rates of home loans. The end user who wanted to buy new
property directly from builder and can only pay considration money in white either from self-funding or through bank loan will get benefited as currently market touching on its low points. Real estate market is already undervalued and giving opportunity of buying as it exist 90% of end user who are looking to buy for their own stay or end use of the property. It is right time to buy property rather then sell. As there
is no cash transaction is happening in real estate and no seller is accepting
cash or white.
Under this scenario Builders/ Developer selling less than 1cr properties
getting huge benefit due to the client shift from resale market to primary
market. The sales number are more or stable in primary market and expected to
grow month on month.
Secondary Market ( Resale Properties)
Secondary Real Estate Market also known as resale
market where the huge cash is involved. Normally people use to buy property on prevailing
circle rate decided by the govt. time to time which is usually low as compare
to market selling rates. Due to demonetisation and currency change of Rs.500 and
Rs. 1000 Notes, sellers either not able to take cash while selling their properties nor able to take 100% through bank loan or white. If they take 100% property value in
white then they have to pay capital gain tax which is close to 25% on the profit /
This impacted badly in secondary / resale market. No Transaction is
happening in resale market. Under this senario developers / builders having clean track record getting benifit as end users are moving from secondary market to Primary market for buying, which leads to boost on primary market.
Conclusion: Primary Market is expected to Grow by 15-20% . Source : CREDAI & Zee News