The Indian real estate market was hit by the shock of demonetization, when the Rs. 500 and Rs. 1,000 notes, amounting to about 86% of the currency were banned by the government on November 8, 2016. It created a lot of chaos for a couple of months, but the nation has moved on since then. So what does this mean for you if you want to sell your real estate in India quickly in 2017?
Real estate experts expect 2017 to be a very good year for the Indian property market. The Indian economy is expected to have grown by 7.2% in 2016, which is not bad, and similar to the growth rate experienced by China. In 2017, the Indian GDP should grow at a slightly lower pace, at 6.3%, because the economy is still coming to terms with the impact of demonetization, besides having to deal with other global factors.
What’s fuelling the growth in the Indian economy is the rising power of the middle class in the country. The middle class has seen higher disposable incomes over the last decade and a half and have been exercising their financial power in more ways than one. Many have been looking to buy out of their old homes or apartments and to move in to new properties that are befitting of their new status.
There is a lot of talk in the media as to how the demand for real estate would go down in India following demonetization, but this does not make sense by any means. Over 60 percent of India’s population is below the age of 35, which means there are a lot of young people in the country who will want to get married, buy a home of their own, so that they can move out of their parents’ homes or buy something more permanent than a rented accommodation.
So the demand for real estate in India will always be high, regardless of temporary shocks to the system such as the banning of the high value currency notes. Major financial institutions such as Blackstone and Jones Lang LaSalle, which generally stayed away from the Indian real estate market, are now investing heavily into prime properties for sale in India.
Billions of dollars have poured into residential and commercial real estate in India, from rich overseas investors. Non-resident Indians (NRIs) or people of Indian origin who have made it big abroad, are among the biggest investors in the country.
India has 1.3 billion people, which makes it the second most populous country on the planet. India is all set to overtake China and become the nation with the world’s biggest population by 2022.
The average household debt in India is quite low, as Indians are generally a very conservative people when it comes to finance. Taking on huge debts is frowned at by the society. This means the housing market here is not as saddled with debt as in some of the other countries in the world.
This is certainly good news for those who are looking to buy real estate in India online in 2017. Any investment in Indian real estate will pay off significantly over time, as the demand for properties here will only increase in the future.