Good news, developers across segments are waiting for this amendment. At last, the latest 2017-18 budget which is effective from next financial year, provides infrastructure status to real estate industry.
What it means? Property developers can get access to funds/ loans/ credit at cheaper cost. Institutions like mutual funds, housing financial entities, pension funds will provide credit and can invest in housing projects. Cost of funds is one of the main reasons, why property prices are roof high. When developers get funds at lowest rate, the cost of homes will come down, as a result people will start buying houses.
But it may not happen immediately, my guess would be the prices as well the new houses will come only after the present inventory is cleared in the market.
We can expect 1-2 year to get the prices cooling down. This is good news for Real estate sector, where it is reeling under market slow down, demonetization, poor economical growth etc.
Apart from the above reasons, there are good things the govt had amended, like tax relief for unsold houses, moving from built up area to carpet area under affordable housing definition, etc.