IBC ordinance gives another reason to Home Buyers to invest in Real Estate

We are euphoric to announce this welcoming change where in the home buyers will now get the status of “Financial Creditors” as per the recent amendment in the Insolvency and Bankruptcy Code (IBC) 2016 by the Government of India. In the month of August this year the President of India has also granted his nod of approval to the IBC (Amendment) Ordinance. Like any other stake holder participating in Real Estate Project, home buyers will also be granted with the exact same benefit which grants them the representation in the creditors committee. The IBC amendment was made after acknowledging the fact that money which is raised from the home buyers is used as a mean to finance construction and thus they should be treated as any other financial creditor.

Approximately 20 to 30 percent of the Real Estate Projects face delay because of the various reasons from the developer. With the delay in the project, it becomes very difficult for them to manage their financials, as home buyers in India invest most of their savings in making the down payments of the property, pay EMI’s on the loan and in the current place of their stay they also continue to pay the rent at the same time. That turns out to be a triple whammy for most of them but with the new IBC Amendment, this scenario will change once and for all.

The Amendment in the IBC ordinance will bring a great level of transparency in the deals and curb the fly-by-night developers. By the virtue of IBC (Amendment) Ordnance, reputed developers offering ready to move apartments or apartments nearing possession will now come to fore which will automatically boost the sales numbers. Real Estate will see an increase in the pricing despite the increased borrowing costs, this is because 20 to 30 percent of the total value comes from institutional lending and rest comes from the construction linked payments which are made by home buyers. It is only under extreme financial stress that the lending institute can go for IBC Ordinance because most of the times, stressed Real Estate assets are taken over by sponsors by refinancing them.

It was only last year when Real Estate (Regulation and Development) Act (RERA) was implemented to bring transparency in the system and protect the interests of home buyers. The IBC Amendment added another cherry to the cake by adding an extra layer of security to the potential home buyers by giving them the status of financial creditors. These major reforms in the system of Real Estate Industry make it very evident that the Government intends to empower home buyers and how.

Why Should You Buy Commercial Property in Gurgaon?

Investment in commercial property has always been considered as an impeccable avenue for diversifying your investment portfolio and for getting back substantial returns. And since we are talking about Commercial property in Gurgaon, you can be sure that your investment will exponentially appreciate in the coming time.

As a city, Gurgaon has developed significantly in the last couple of decades, so much so that it is almost unrecognizable from what it used to be. Also known as the Millennium City, when it comes to Gurgaon commercial property the infrastructure development is on a constant upward path. The establishment of several IT parks, MNCs, and SEZs has led to an unprecedented development in the city, attracting people from all over the country and overseas. This rise in the number of people migrating to the city has also given impetus to the demands of not just residential areas, but also ample commercial establishments to help meet the needs of this increasing populace. In such a scenario, it makes increasing sense to invest in upcoming and new commercial projects in Gurgaon. Moreover, it is not hard to find a commercial property for lease or sale, as per your investment budget.

The Best Commercial Property in Gurgaon is here

When it comes to commercial property for sale, AIPL is where you get worthwhile lucrative returns on your investment. With us, you can find a substantial number of upcoming commercial projects in Gurgaon, built not just in prime localities, but also with a conscious thought to green development and environmental conservation. Advance India Projects Limited (AIPL) multi-dimensional commercial portfolio ranges from commercial office space in Gurgaon to retail spaces, along with an innovative product mix of retail, offices, living & entertainment. A great track record of quality, innovation, transparency, and timely delivery has helped build a trustworthy family for our investors. Besides six upcoming commercial projects in Gurgaon, AIPL also has a 26 years old legacy of successfully completed projects that have helped our customers, partners, employees, and investors create worth.

About Advance India Projects Limited

AIPL has a diverse portfolio in property investment, ranging from residential to retail projects across Delhi NCR and Punjab. In the last three decades, since its inception, AIPL has grown significantly, offering new heights in quality developments through excellence and innovation. AIPL has successfully developed and pioneered several residential & new commercial projects in Gurgaon, which are endorsed by more than 70 multi-national companies as well as Indian corporates that are housed in 35 commercial projects by AIPL in the National Capital Region.

AIPL is headquartered in New Delhi and has six regional offices across the country. The company portfolio has 50 landmark projects, making us the developer of choice to buy commercial property in Gurgaon and other regions like Gurgaon, Delhi, Noida, Amritsar, Khanna.

Why you should be investing in real estate now

2017 was a topsy-turvy ride for the Indian Real Estate Sector, but the year 2018 brings a favorable time for Property Buyers. Let us share with you few reasons as to why you should be investing in real estate right now:

Regulatory Reforms

The real estate market in India has been going through a transformative phase due to a spate of regulatory reforms. The introduction of reforms under the RERA and the Goods and Services Tax (GST) are the catalyst behind this transformative phase. The introduction of RERA has particularly boosted the confidence of consumers, as it is mandatory for the real estate projects to comply with the provisions provided under it. This will ensure that projects are delivered on time, and the money collected from the buyers isn’t diverted for other purposes. The adherence to compliances under RERA will also ensure that only the most-committed real estate developers are able to function in the market.

Large unsold inventory

A combination of high prices, excess supply and low consumption has resulted in huge inventories of real estate remaining unsold across the country. The slump in the market caused by demonetisation coupled with the introduction of RERA has prompted the real estate developers to focus on completing the existing projects and clearing-up the unsold inventories. This can be gauged from the fact that new home launches across top 14 cities India during the first half of 2017 fell to about 58,000 units as per the National Real Estate Development Council (NAREDCO), which is the lowest in the past 5 years (Source). This environment greatly favours the buyers, as there is an excess supply of properties, leaving the home buyers in a better position to negotiate.

Low home loan interest

To curb the presence of excess liquidity in the banking system, the RBI changed the key lending rates. This has resulted in home loan interest to fall to between the ranges of 8.3 to 8.4 percent (Source). This allows people to access low-cost home finance, offering considerable savings on EMIs.

Revival of interest from global investors

The introduction of RERA has instilled a level of confidence in the global investors that wasn’t present before. The real estate sector is expected to receive Private Equity (PE) investments of up to US $4 billion during the fiscal year (Source). This will ensure that the revival of real estate market is on track, which is surely good news for the consumers.

The year 2018 presents an excellent opportunity for those looking to invest in real estate, and the time to make a move is now.