4 reasons why residential real estates prices will rise post rera at hyderabad
Answers
Before you take a look at the reasons of why residential real estate prices will rise.
Firstly its important to take a look at RERA.
Basic introduction:
RERA, also known as, Real Estate Regulation Act
This act had the purpose of enhancing transparency, mitigating information, uniformity in rules for developers across various states in India.
POST RERA PRICES IN HYDERABAD WILL RISE DUE TO THE FOLLOWING REASONS:
1. The demands will scatter. Looking at the conditions under this act, the implementations will be on basis of more security for buyers, so the costs will also vary depending on the risk factors in the investment.
Its predicted that people will witness the high risk-high returns investors thinning down on the ground.
Investors will also be low-key because they need to see increase in the prices alongside increasing number of sales. The end user demand would pickup due to the availability on transparency and home loans. As demands rise, prices will rise.
2- There will be shortage in supply of such deals. Since sellers have to fulfill all the rules, its most likely that only certain deals will be up for grabs. So usually when there are less of the required product available, the price of that product tends to be high.
3-The holding costs for the builders will rise, they wouldn't be able to make many projects, this would add to the input costs, so prices will rise overall.
4- Post demonetization and RERA, land prices will result being costly overall, as all will be sold via legal means and documentation.