With implementation of recommendations of 7th Pay Commission just a couple of weeks away, the realty sector of the State has started planning to attract home buyers. Though the first reflection of increased salary of Central Government employees would appear in August, sector players and experts believe that many might have already started planning of their first home.
Central Government has decided to implement recommendations of 7th Pay Commission, which has recommended a minimum salary of Rs18,000 to all employees, which earlier used to be Rs7,000. The maximum salary has also been recommended to be increased to Rs2.5 lakh, which earlier used to be 90-95 thousand. The increased pay has been recommended to be calculated from the first day of this year itself.
“We are definitely going to see a better realty market after people start getting increased salary. The realty sector has been sluggish from some time due to obvious reasons. But we will certainly see end users returning to the market,” said president of CREDAI (Jharkhand) Kumud Jha, who himself operates a realty company called Feacon Constructions Pvt ltd.
Jha said that this extra inflow of money would help realty sector in two ways. “Firstly, there will be first home buyers who would not only look at smaller homes, but also little larger ones in case they already had budget of average size home. Secondly, the inflow of second home buyers in the market can also not be ruled out, as they will have increased capacity of paying their installments,” Jha added.
But fresh land availability for new builders, and for older ones also, to some extent remains a bigger issue in Ranchi, which already has a bunch of old regulations keeping land buyers from outside the State away from market.