Many changes were witnessed in the real estate market in 2017, leading to a challenging time for it. However, revival of the sector is expected in 2018.
Real estate being one of the most pivotal sectors of the Indian economy is on its way to be streamlined in the present year. Many changes were witnessed in the real estate market in 2017, leading to a challenging time for it. However, revival of the sector is expected in 2018.
The Real Estate Regulatory Act (RERA), 2016 was implemented in our country in 2017. As an Act of the Parliament of India which seeks to protect homebuyers as well as help boost investments in the real estate industry, it will bring in positive returns in 2018.
Various states are launching the RERA websites and in the current year all of them are expected to complete all the pending work related to RERA. However, homebuyers should do proper research in order to go for developers who diligently follow RERA guidelines.
The implementation of GST (Goods and Service Tax) is also expected to bring more transparency in the real estate sector and minimize unscrupulous transactions. The GST law has increased the margin in the hands of contractor/developer by removing all the unwanted taxes.
For the residential sector as well as the commercial sector, the implementation of this policy will definitely be a positive sentiment benefiting the sector as a whole. GST may not be instrumental in bringing down the prices over the short term, but in the long run it is bound to help both developers as well as buyers as the acuity of the sector will improve on the back of a simplified tax structure and accountability being fixed at every stage.
In the times ahead, the government’s initiative of Smart City Mission will also boost the sector. It is an urban renewal and retrofitting program by the present government with a mission to develop 100 cities all over the country. Under this more cities will turn into smart cities, giving opportunity to the real estate stakeholders to actively participate in this.
Each of the policy reforms offered by the present government is turning the Indian real estate sector into one of the best investment destinations for foreign developers to invest here. Soon, the real estate sector will have developers from across the world.
Having said that, the current environment does present a genuine opportunity to buy property and make the best out of 2018.
(By Pankaj Bansal, Director, M3M Group)