RERA, GST will have a positive impact on the real estate industry...

RERA, GST will have a positive impact on the real estate industry in the long run: Shivam Sadana, Sadana properties

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Sadana properties is a self-funded real estate firm headquartered in Haridwar with their presence all over the northern parts of the country. It is enganed in High End Residential, commercial, Agricultural and Industrial units.

Replying to Newsbarons, Shivam Sadana, MD-Sadana Properties says “Demonetization was a good step taken by the government which decreased the black money circulation in the market which was making the economy more unprofessional.”

NB:What is your outlook on the real estate sector?

Shivam Sadana: Real estate sector is the only sector that amounts to about 5 to 7% GDP growth in India. It also provides employment to majority of population. Real estate involves Construction, development, management, and Realty services. It is the only sectors where most of the businessman and financiers prefers to invest their money to get the long-term benefits. It is the market where one needs to be patient. There are five types of real estate in India: Residential, Commercial, Industrial, Agricultural and institutional. There is a lot of scope in investing time and money in the real estate sector in future. In the future, the company aim to extend its operation in other states/parts of India.

NB:Brief us about the concept of “Property Management”?

Shivam Sadana: Property Management includes services like collection of electricity bills, rat control services, pest control services, cleaning and security services. The majority among property management customers are NRIs in India. It is a western concept which is taking a good place in India industry too. Property management is helping the Indian Property management is the management or taking care of the customer’s property when a customer lives some other place/state or abroad. The property management real estate industry to maintain its Resale value due to the lack of time and distance travelling problems, people prefer management activities for their property.

NB: What is your mix in terms of residential and commercial?

Shivam Sadana: Both residential and commercial real estate are linked to each other. Commercial real estate generate income to the people to maintain and develop their residential properties. Real estate developers prefer to launch mix projects(Residential-commercial) to provide more comfortable environment to the customers. The mix (residential and commercial) projects are selling their units more than that of only residential projects. In most of the cases, the value of commercial land is more than residential land depending on the area and location.

NB: What is the impact have you seen on GST and RERA on Real estate sector?

Shivam Sadana: RERA and GST both will have a positive impact on the real estate industry in the long run. It is the“achhe din” for buyers. One-time GST on purchase of real estate removes the past confusion of different taxes on such past purchases. Buyer now is more conscious and aware of the real estate deals and is now totally safe as per RERA guidelines. Earlier, the customer used to suffer a late delivery of residential units, frauds from property dealers and many other issues were there. Now after RERA, the sector is almost ready to be organized. Real estate developers can’t advertise false claims in their prospectus.

NB: What is the impact of demonetization on Indian Real estate?

Shivam Sadana: Demonetization was a good step taken by the government which decreased the black money circulation in the market which was making the economy more unprofessional. The black money financing in the market was the money of actual real estate customers which were used in the black-market activities by the developers. Builders were not using the customer’s money in the project but in their personal market activities. Demonetization helped a lot in controlling terrorist and illegal financing activities. It was important to clear the unwanted activities before giving it a formal(RERA) structure.

NB: There is lack of awareness about RERA in the northern parts of India?

Shivam Sadana: There is a lack of awareness about RERA in the northern parts of India. There was not much effort done by government authorities to deliver proper RERA guidelines/knowledge to Realtors, developers and investors. The implication lacked the smooth applying process which created confusion of what it is. The buyer has the full right know the RERA guidelines. RERA is going to benefit most to the Income salaried buyer. The government should have organized more and more seminars on Real estate regulation authority. They didn’t even cover proper professionals in their limited seminars.

NB:What is the Scope of Real Estate Education in India?

Shivam Sadana: There is a lot of scope in Real estate education in India. We not only want engineer, architect or interior designers but also nice property managers, project managers and Certified/registered real estate professionals with the vast knowledge of the industry. The education system of high schools and colleges needs to be changed to prepare students for building better infrastructure for the country. The amity school of Business did a great job in collaborating with THE RICS by launching real estate professional courses.