Wednesday, September 21, 2016

Seventh Pay Commission and its impact on the real estate sector

The Union Cabinet’s implementation of much-awaited Seventh Pay Commission has given public sector employees and pensioners a big occasion to celebrate. The Central Government Employees will receive a hike of about 23.5% in their salaries. This increment in the earnings of the Government employees is bound to have a positive impact on the Indian real estate sector. The hike in the House Rent Allowance (HRA) is expected to increase the residential demand further.

Mentioned below are the highlights of the Seventh Pay Commission that will boost the real estate sector:

  1. Higher purchasing power - The starting salary slag of Government employees is pushed from INR 7000 to INR18000. The topmost salary slag will be INR 2.25 Lakh per month. As per experts, the hike in the salary will increase the purchasing power of the employees, thus tempting them to invest in residential properties.
  2. Increased loan eligibility - The rise in salaries will increase the loan eligibility as well as the repaying potential of the people. The high amount of loans will encourage people to invest more in properties.
  3. Growth in economic development - Employees of some Central Government departments have already started getting the revised salary as per the Seventh Pay Commission. It means that in these departments the six month arrear will also be distributed during the current financial year itself. Receiving a larger amount together will also encourage individuals to make an investment in the residential sector. The increased investment in real estate sector means growth in the economic development of the country. It is obvious that rapid economic growth always works wonders for real estate sector.
  4. Increment in gratuity- The earlier gratuity of INR 10 Lakh has been increased to INR 20 Lakh, and the HRA (Housing Rent Allowance) has been raised from a mere 7.5 Lakh to 25 Lakh. The increment in HRA is bound to bring more money in the real estate sector.
  5. Benefits to Pensioners - Pensioners being a major chunk of beneficiaries of the Seventh Pay Commission will now have more funds at their disposal to invest. They can invest in a dream home that is away from the hustle bustle of the city.
  6. Higher demand for affordable houses - The substantial hike in salaries of middle-class people might result in more demand for affordable residential properties. This is mainly because more middle-class people will have access to a significantly increased lump sum amount.

The sale of residential properties is expected to increase gradually by the end of this year. The implementation of the RERA bill will also encourage the buyers to invest in the realty sector. Also, the new launches in various areas will give the buyer more options to choose from.

A report by Neelkanth Mishra, Prateek Singh, and Ravi Shankar of Credit Suisse suggests that the implementation of the Seventh Pay Commission will have a huge impact on the properties in small towns as compared to the ones in the main cities. This is mainly because more than 80% of the Central Government employees are located in tier II and III cities.

As per the experts, now is the right time to invest in the real estate sector. The expected surge in the realty sector in the coming times might just bring you the wonderful stroke of luck you need. The development of properties in Devanhalli town in Bengaluru makes it a great option for investment.

The experts also believe that along with the housing sector, the transportation sector too will receive a boost. It is seen that people with more disposal incomes tend to spend more on things like food and transportation.



This is a guest post by Pooja Shet

51 comments:

  1. Bramhacorp Providing the best Flats in kalyani nagar with best Facility and Wonderful Area...

    ReplyDelete
  2. I think, there are various kind of Apartments and Flats are available for Sale, where you can easily get this kind of properties on very reasonable price.
    Luxury Apartments in Central Bangalore | Plots For Sale in Bangalore

    ReplyDelete
  3. Great and very important information you have shared here. Thanks!

    ReplyDelete
  4. Mornington Building Inspections is very important to check for defects via a pre purchase building inspection that could cost you thousands of dollars in repair bills post completion of the purchase.

    ReplyDelete
  5. I have been through your blog and I found it very helpful for planning my travel in future and also will help in planing tour for others too.Car Hire for Agra

    ReplyDelete
  6. The blog is good enough I again n again read this.

    Nicholas

    ReplyDelete
  7. Nice and informative blog. Every real estate developer should know such things. Thanks for sharing.

    ReplyDelete
  8. Great informative thing you have shared for real estate developers. This information will be useful for me.

    ReplyDelete
  9. 7th pay comission has given real estate seekers much relief.
    The increased pay and the arrears are giving them much needed push.
    You can checkout the best properties of tier 2 cities below :
    Nagpur : http://www.capitolheights.in/
    Cochin : http://www.tritvam.com/

    ReplyDelete
  10. Hello Blooger,
    Its truly amazing information very helpful as well as interesting thanks for sharing it.
    Also visit Mantra 24 West at Gahunje in Pune available at amazing rates

    ReplyDelete
  11. Thanks for sharing this valuable information here.

    ReplyDelete
  12. very informative article. We should have more such articles based on real estate to provide valuable information to home-seekers

    ReplyDelete
  13. I agree that much can be learned and adopted from this common, Thanks for this interesting blog!
    We also Offer rental properties christchurch at very low prices with the best quality.

    ReplyDelete
  14. Amazing tips to give charming look to house. thanks for sharing this ideas with us.house for sale in bangalore|villas in bangalore - Real Estate

    ReplyDelete
  15. Part time maid service Doha
    Get part time female maid and nanny services on hourly basis for residential and commercial cleaning in Doha, Qatar. For more info visit - http://the-cleanteam.com/

    ReplyDelete
  16. Thanks for the information... I really love your blog posts... specially thanks to those on Builders in Chennai

    ReplyDelete
  17. Thanks for the information... I really love your blog posts... specially those on Leading builders in Chennai

    ReplyDelete
  18. This comment has been removed by the author.

    ReplyDelete
  19. Great detailed information, I ll be visiting you more frequently, here is very interesting information.

    sell house fast hucknall & buy my property birmingham

    ReplyDelete
  20. Thanxs for sharing with all of us the Incredible post on ur blog . Its really illusive.
    Flats in Mumbai & Thane

    ReplyDelete
  21. Hello Everybody,
    My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.

    BORROWERS APPLICATION DETAILS


    1. Name Of Applicant in Full:……..
    2. Telephone Numbers:……….
    3. Address and Location:…….
    4. Amount in request………..
    5. Repayment Period:………..
    6. Purpose Of Loan………….
    7. country…………………
    8. phone…………………..
    9. occupation………………
    10.age/sex…………………
    11.Monthly Income…………..
    12.Email……………..

    Regards.
    Managements
    Email Kindly Contact: urgentloan22@gmail.com

    ReplyDelete
  22. Are you in need of a loan? Do you want to pay off your bills? Do you want to be financially stable? All you have to do is to contact us for more information on how to get started and get the loan you desire. This offer is open to all that will be able to repay back in due time. Note-that repayment time frame is negotiable and at interest rate of 3% just email us creditloan11@gmail.com

    ReplyDelete
  23. India’s Top Notch Property Search Portal - Find real estate properties with complete map, near localities and much more. Buy/Sell/Rent or find agents quickly.
    Visit: Hindustan Property

    ReplyDelete
  24. It’s my fortune to go to at this blog and realize out my required stuff that is also in the quality.
    financial freedom

    ReplyDelete
  25. Search Real Estate Properties in India at PropertyBaz.com, the best property site in India. Buy, Sell, Rent residential and commercial properties. Search for Apartments, Houses, Commercial, Land-Plots and other property listings on India's trusted Real Estate portal PropertyBaz.com.

    ReplyDelete
  26. Search Real Estate Properties in India at PropertyBaz.com, the best property site in India. Buy, Sell, Rent residential and commercial properties. Search for Apartments, Houses, Commercial, Land-Plots and other property listings on India's trusted Real Estate portal PropertyBaz.com.

    ReplyDelete
  27. Finally I’ve found your blog, awesome way of explaining each and everything really.
    Perla Condos

    ReplyDelete
  28. he increase in supply also means more choices for retailers in the suburban areas which will continue to put a cap on suburban retail rental growth next year. home rental management

    ReplyDelete
  29. This comment has been removed by the author.

    ReplyDelete
  30. Nice content. Thanks for the info. With a classy elevation, Giridhari Kamala Narayan stand out as a landmark on Padmaraonagar. Our top builders offers a fine selection of 2/3Bhk apartments with large open spaces. For more details please visit our website. top builders in Hyderabad

    ReplyDelete
  31. Its obviously a good news for government employees. Its not just a 5-10 % hike, its a 23.5% hike. So there are more chances of people going for real estate investments.
    residential projects in pune

    ReplyDelete
  32. Hello Everybody,
    My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:{urgentloan22@gmail.com} Thank you.

    ReplyDelete
  33. Thanks for a nice share you have given to us with such an large collection of information. Great work you have done by sharing them to all. simply superb. 2BHK and 3BHK apartment Chennai



    ReplyDelete
  34. I came across through your blog. I found the valuable information about the real estate. Thanks for sharing.
    3 bhk flats for sale in t nagar

    ReplyDelete
  35. Nice Information.
    I really like all these suggestions. Thank for sharing such a fantastic post. If you want to get a Best Resorts around Delhi so you call us: 9711280850

    ReplyDelete
  36. thanks for sharing this we are from valley trip plannera best travel agency in srinagar offer cheap srinagar holiday tour also we offer you best and cheap leh ladakh tour pacages

    ReplyDelete
  37. nice blog,thanks for sharing the nice information.Fabulous Shops for sale in Pune , that offers best office spaces, ahead in your business Shops in Kalyani Nagar with best Avenue, a super structure with floor space...

    ReplyDelete
  38. This blog was really helpful for me and I liked the information given in it. I have seen a similar blog related to this. One of the 2 bhk flat in ayodhya bypass road is . they are the best builders in bhopal. . They into construction business from the past three decades so they have experience and people have trusted over them

    ReplyDelete