India is one of the fastest growing real estate market and 2017 was not less than a roller coaster ride for real estate world. With the implementation of demonetization, GST, RERA govt gave back to back shock to the country for welfare, growth and increment in economy. These three steps assure transparency and clarity in real estate sector.
Here are some view points of real estate developers :
The countdown for 2018 has already begun. Year 2017 brought much revival for the real estate industry. By introducing regulations like RERA, Benami Transaction Prohibition, REITS, GST there is a long-term industrial growth and it also impacts on ease of business by transparency at work. On the demand side, the office space requirements of sectors such as manufacturing, logistics, FMCG, etc., showed positive signs, and we expect this to continue in the coming time ahead. Many malls which were to be completed in 2017 were completed in the year and many malls are to be developed in coming time. Many developers, private equity players are also partnering with developers active in this space to earn more profit in the sector. We believe that the Indian real estate sector will emerge stronger, healthier and capable of long periods.
The year 2017 has been good for the real estate fraternity: with this, 2018 is going to be the best time to invest in this sector. The developers will take active interest and buyers will have huge range of properties to choose from and purchase. Demonetisation, which was done to crack down the black money, was finally proved to be beneficial for the segment in 2017; hence it will bring better economy to the country. Goods Service Tax (GST) would bring a lot of transparency in the real estate sector and minimize unscrupulous transactions in 2018. RERA whose main function is to bring accountability in the sector by streamlining the entire process is not going to have much of the effect on the organised sector, the unorganized sector are going to face problems relating to it. Ready to move –in- apartments are going to earn extra interest from the buyers as these save the construction timing and are the best option for them. The future is bright as the market is expected to pick up and continue like this.
The year 2017 can be regarded as a watershed year for the real estate sector due to the implementation of Real Estate Regulation and Development Act (RERA)and Goods and Services Tax (GST). The forthcoming year is the perfect time to invest in real estate sector as these legislations have heralded transparency and accountability into the sector. Home loan rates, too are at an all-time low and are expected to remain low in the near future as well. This implies considerable savings in the EMI costs that will enable homebuyer’s to avail low-cost home finance and fulfill their dream of owning a home.
There have been various policies implemented in 2017 that have impacted the real estate market to a great extent. With the coming of RERA and GST the realty market witnessed a tumultuous change but all for the better in the coming time. Apart from this, the reduction in circle rates, twice this year has led to lowering of the costs which would boost the sector in the coming year. However, the realty market is recovering gradually post implementation of RERA and GST, therefore, the coming year will hopefully be positive for the sector. An increase in sales and decline in unsold inventory is expected. 2018 may witness new launches as well but most of the developers will focus on completing their under construction projects. Moreover, there is need for more clarity on GST leading to better transparency in the sector.
As a landmark year for the country and for the real estate industry, soon it’s going to close, like any other sector the real estate segment also experienced many ups and down in this year. Some of the biggest game-changing policies like GST and RERA were implemented in the year, which aim at bringing transparency and accountability in the sector. Clarity on the applicable GST rate for the real estate sector is still expected in the next year. We can say that in longer period both RERA and GST will bring smiles on the face of the developer as well as for the home buyer. Affordable housing finally got the much-coveted infrastructure status. One crore houses are to be built in rural India by 2019, and this vital segment will now see cheaper sources of finance which will give further boost to the sector. The country's real estate markets are definitely poised for growth in the medium-to-long term on the back of higher transparency and further consolidation. The demonetization move showed considerable beneficial; however, along with the Benami Transactions Act, it proved to be profitable to the entire segment.
2017 has been a landmark year both for the Indian Economy and the Indian Real Estate. Policies such as RERA & GST have ushered in transparency and stroked confidence among buyers. Talking specifically about the Commercial Realty segment, co-working spaces and business centres have become the preferred choice in a short span of time, thanks to the rapid urbanization. Across the country, co-working spaces and business centres have been in great demand with freelancers, startups and small and medium businesses flocking there for the amenities, prices, and flexibility and networking opportunities. Additionally, another interesting industry trend that’s been observed is office occupiers in Gurgaon are pre-committing office spaces in under-construction especially in central business districts of Gurgaon to secure themselves against high or rising future rentals. For the year 2018, the tidal growth for office spaces will continue as larger corporates and smaller companies are increasingly opting for co-working spaces.
Recent government initiatives including RERA, GST along with Real Estate Investment Trusts (REITs) will help improve transparency in the long run and thus increase buyer’s confidence in the real estate sector. With the overall market moving towards ease of doing business, we can expect potential buyers (end users) to relook at the market for investment opportunities. Having less project launches and uniform absorption will leads to increase in demand hence, improving sector in coming year. Also, 2018 will be the year of affordable housing. Since the market is consumer friendly, buyers will tend to invest in affordable housing segment owing to great options at affordable prices and good investment returns with time bound possession. The loan interest rates are low, making banks more supportive and thereby encouraging the buyer to invest. We believe that the long term market dynamics for the sector will remain positive, especially in the residential market.
So, from the above mentioned prospective of the developers, budget should be maintained keeping in mind both the buyers as well as developers sides. The fraternity faced few hurdles created by the RERA and GST, but now the situation is under control as the sales rate and investments have swelled up. We hope 2018 to be more productive and progressive year with affordable budget and GST rates.