Know the trend of real estate sector
Housing being one of the basic needs of human accounts to high percentages of national transactions every year. In India, real estate plays an important role in providing affordable housing, infrastructure and in generating employment. Land and property are main components of real estate sector whose value varies due to demand and supply conditions of the market.
The real estate sector is definitely on the rise. Some important factors like demographics, location and state of the economy, interest rates have affected the price of the real estate properties in the country.
Real estate developers have said that the increase in service tax rate to 14 per cent from 12.36 per cent being enforced from June 1 of this year does not bode well for the industry which is struggling to revive amid lukewarm demand and oversupply. The effective service tax rate on real estate in the coming month will make a buyer to pay additional taxes while purchasing the property. The demand in this sector will get negatively affected as it will be hard for customers to bear the extra burden.
These variations are dependent on the value of property and different extrinsic and intrinsic factors which affects the same. This sector has grown to such a monetary size that even minute variations have significant effect on the country’s economic development. A right insight in regards to the right time of purchase of property, price escalations, and recessions in the real estate market can help an investor in making the right and valuable purchase decisions.
Real estate is one of the biggest purchases of our life. So every step on the way to buying a house whether for living or investing must be taken with extreme care.