The year 2017 had a lot in its store for real estate trends in India considering the changes brought in by the sudden demonetization, announcement of GST and RERA. The impact each change had on the industry and will have on the real estate in India will depend on a number of factors. Demonetization that happened on 8th Nov,2016 had an impact till the first quarter of 2017 and with real estate being no exception. Due to this, deals were lying stagnant due to involvement of cash. However, this did ensure that the prices went down and made the sector more affordable to the public. Post this, RERA and GST were announced with their own set of impacts, even leaving the market curious as to how the winds will change the real estate in India.
RERA is Real estate Regulatory Act which which came into effect on 1st May’17. As per the act, real estate agents and also developers have to get themselves registered under this act. The basic aim of the act is to introduce transparency in a system where the buyers were exploited by the developers. Considering the amount of apartments/flats being not given possession despite complete and proper payments by the buyers, the government came up with this act so as to curb the pain to property buyers having a significant impact on real estate in India.
The trends for 2018 show that the year will be marked with stability and will be a year for buyers considering the factors mentioned. As per the predictions, there is excess of supply and hence property buyers are in a much better situation to negotiate and grab a deal with so many property units lying vacant. The loan interest rates are low further adding to buyers happiness. As with the RERA Act, developers are more focused on completing the already pending projects over starting of new projects. As per reports, the country might be lucky enough to receive large amounts of Private Equity investment funds. Talking about the government, it has already planned housing schemes in mind which are predicted to be taking shape in 2018. here are several tax incentives available for developers for building affordable housing projects. The Government has already decided on increasing carpet areas to 120 sq. m and 150 sq. m for MIG-I and MIG-II categories. An interest subsidy of 4% will also work as a major catalyst for sellers and buyers of real estate. There will be changes in real estate pattern in various cities over India which need to be kept a close watch upon.
Also this year will be a witness to developers changing their business models and in order to comply with the RERA act and to bring about transparency and accountability in the system. It is now under law to complete the project in time, pay for the delay caused if any and be careful about buyer sentiments. The industry will be also witness more consolidation due to increase in developers, projects and the very lack of customers. This can be seen as a merger of small and big players or merger of struggling and established players.
The industry is keen to see many more changes in the coming year which might nit be evident now but will start taking shape in some time. However, this year is definitely one for buyers with their needs being respected and more opportunities to grab in real estate in India.