STATUS UPDATE - Real boost from the Pay Commission

Created on 29.01.2016 20:13:46
STATUS UPDATE - Real boost from the Pay Commission
Implementation of the Seventh Pay Commission recommendations will give a boost to real estate sector
DK Singh was planning to buy his dream for the last ten years. Being a Central Government employee, Singh has limited resources at his disposal and now with the Seventh Pay Commission already submitting its report to the Central Govt, he sees some semblance of hope to turn his dream into reality. With the real estate sector reeling under tremendous pressure of unsold inventory, the Pay Commission report may turn out to be a blessing in disguise.

Developers are of the view that that the Pay Commission recommendations will boost the spending propensity of the salaried people and real estate being a viable option, the segment is likely to end up getting a sizable investment. Sachin Sandhir, Global MD, Emerging Business, RICS, says, “The Seventh Pay Commission's recommendations will bring in much needed funds in the hands of a common man who is looking to stay in his own house rather than a rented one. Housing demand is expected to go up as Pay Commission's recommendations would put higher disposable income in the hands of these employees.“

Another developer says, “The 7th Pay Commission rec ommendation, in our view, is an important milestone in the real estate cycle as an increase in salaries of government employees is likely to boost the demand for home purchases.“

Hemant Tikoo, chairman, Experion Developers, points out, “With higher disposable income in the hands of Central Govt employees and pensioners, it is quite likely that people will consider investing in real estate. We do foresee impact in the mid-segment particularly in tier-II cities where established real estate developers have ventured into with suitable offerings for the purpose of investment and great living.“

Rupesh Gupta, director, JM Housing, says, “A huge chunk of the buyers' group today comprises of government employees and with their pays expected to go up by as much as 23.55 per cent, we are sure to see a spike in the people ready to invest across the sector.“

Mukesh Khurana, MD, Rudra Buildwell, notes, “A huge number of government employees would directly be receiving the benefits of this proposed pay hike. It can well help estimate the number of families which will be ready with a bulged pocket. This is sure going provide much needed consumer influx for the sector.“



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