The year 2017 witnessed two major policy changes with the introduction of Real Estate Regulatory Authority Act 2016 (RERA) and Goods and Services Tax (GST). RERA was formed with the motive of reforming the real estate sector in India, encouraging greater transparency, citizen centricity, accountability and financial discipline.
Yash Ved of NewsBarons connects with the real estate industry leaders to understand the opportunities for real estate growth in 2018.
Rationalization of tax to cover real estate fully under GST and providing a boost for rental housing are the two key drivers to look forward to – Niranjan Hiranandani, President – National Real Estate Development Council (NAREDCO).
Finally, looking at the outlook 2018 and the future, rationalization of tax as a result of the move to cover real estate fully under GST, and providing a boost for rental housing are the two key drivers to look forward to. In a nutshell, 2017 for the real estate sector has definitely been happening and good – in the long run. In the short run, it can actually be termed ‘challenging’ with the ‘revival’ happening from the festive season.
2018 will see a large-scale consolidation of developers and brokers – Anuj Puri, Chairman – ANAROCK Property Consultants
Overall, 2018 will be a year of market recovery defined by restricted new launches, gradually improving sales and declining unsold units. With a massive focus now on affordable housing, this segment will be the poster boy of 2018, A notable phenomenon in 2018 will be a large-scale consolidation of developers and brokers, and distressed assets changing hands.
We may not see a scintillating residential market recovery in 2018, but it is certain that whatever recovery and growth we see from here onward will be sustainable and backed by stronger market fundamentals than ever before. The days of speculative peaks and troughs are safely behind us.”
Real estate agents have the challenging task of changing with the market – Ashok Mohanani, Chairman – Ekta World & Vice President NAREDCO West
As the real estate market continues to evolve, new trends are emerging for 2018. Real estate agents have the challenging task of changing with the market and being responsive to their clients’ needs. Whether it is a buyer looking to purchase a new house or a seller looking to get the best price for their home sale, real estate agents will need to stay up on the trends of 2018 and be ready to respond to a growing demand for real estate.”
Developers look forward to better business opportunities in 2018 – Amit Ruparel – Managing Director, Ruparel realty
Developers look forward to better business opportunities in 2018, confidence amongst home buyers and investors is expected to increase considerably with the introduction of Real Estate Regulation Act (RERA) and the Goods and Services Tax (GST). Overall, 2018 will witness gradual improvement in sales and a reduction in the number of unsold unit however, the industry is expecting changes in GST as it is in the initial phase and requires important amendments like stamp duty to be included under GST and GST rate for cement to be lowered. Additionally, With Honorable Pradhan Mantri’s massive focus on affordable housing, this segment will thereby experience the biggest boost in 2018. It is certain that the growth we see from hereon will be sustainable and backed by stronger market fundamentals than ever before.
RERA, REIT, GST and Demonetisation had a significant impact on real estate – Shailesh Puranik, MD – Puranik Builders Pvt. Ltd
For the Indian real estate sector, 2017 is marked as a year with highlights and challenges with various news and policy changes. Reforms like RERA, REIT, GST, Demonetisation had a significant impact on real estate and have contributed in bringing a potential change in the sector. Also, the union cabinet’s decision on increasing the carpet area of houses eligible under PMAY has boosted demand for affordable housing.
Although it’s hard to forecast the real estate market that is highly sentiment driven in India, above mentioned factors will drive the future trend, as these steps have resulted in creating transparency in the real estate sector which in turn has helped in improving the perception of investors and financial institutions towards the sector and thus will provide developers capital and cash flow for completion of the project with the stipulated time. Having said that, I am a firm believer of the positive impact of all these reforms and believe that these are just small hurdles and the overall property markets should come on the edge of recovery shortly. These reforms will reap higher growth prospects for builders as well as better returns for the end consumers as well