Ahmedabad
As the Centre is preparing to implement seventh pay commission recommendations, real estate sector is expected to get a major boost. The government employees may turn to investing in realty.
Post revision in their salaries, the purchasing power and borrowing capacities of the government workforce are likely to increase, brightening the prospects for the real estate sector.
"Even before the seventh pay commission is implemented, we've started receiving inquiries for purchasing properties," said Shekhar Patel, managing director of Ganesh Housing.
The seventh pay commission has recommended around 23% rise in salaries of the central government employees. The government will have to shell out additional Rs 1 lakh crore on account of increase in salaries, allowances and pensions.
The real estate developers in the city estimate that there will be a minimum surge of Rs 8,000 to Rs 10,000 increase per month in salaries of various central government employees. As a result, the borrowing capacity may increase in the range of Rs 8 lakh to Rs 25 lakh depending upon the rise in salaries of various categories of employees.
"It will be a game changer for the real estate sector, especially when interest rates have come down and prices of the real estate have bottomed out," said Jaxay Shah, president-elect, Confederation of Real Estate Developers' Associations of India (CREDAI), National.
Source - TOI
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