2017 was a turning point for the real estate industry in India. With game-changing rules such as RERA and financial plans such as GST set in motion, the year saw a lot of changes taking place. After the demonetization effect just started to wear off, there was a steady rise in demand for affordable housing and luxury projects. The real estate in Mumbai was in sync with what was affecting the whole country, and many have mixed reactions towards the year in all. Let’s do a quick review of all the new trends of the year 2017 and see what the new year has in store for us.
The list cannot begin without the mention of demonetization. The entire country was taken aback by the government’s swift move of withdrawing old currency notes of 500 and 1000. While many industries suffered due to this move, the real estate companies of the country were affected the most. This slowed down the market and enquires for residential properties saw a sudden drop. However, post demonetization, the markets are slowly seeing a change in mindset and the future looks promising.
In the wake of the passing of the Real Estate Regulatory Authority (RERA) Bill, real estate developers had to stop the sales of projects that were not registered under RERA. With the basic idea being to promote transparency in all the dealing between real estate companies and the consumer, RERA worked in the favour of the consumers by giving them more clarity on the projects they wanted to invest their money in. However, with real estate companies hurrying to register their projects under RERA by the said deadline, there was a sudden slump in sales in the residential sector.
Another massive blow to the country was the introduction of the Goods and Services Tax (GST). One of the largest and most awaited reforms of the country, GST aimed to introduce a blanket taxation policy that would in the end benefit the consumers. Instead of paying various taxes for different cities and states, now one has to pay a single tax, which is beneficial to the user itself.
Real Estate Investment Trusts (REITs)
One of the most crucial developments in the real estate sector in the past few years, Real Estate Investment Trusts (REITs) aim to help smaller investors by giving them an opportunity to invest in commercial real estate in India. A majority of private equity players have benefitted largely from the upcoming REITs platform and they are now looking at expanding their trade portfolio.
Benami Transactions Act
In a bid to curb black money flow into real estate industry, the government introduced the Benami Transactions Act. The act’s intent is to keep a tab on the dealings taking place in the real estate industry. This will make fraudulent transactions impossible and will even cut down the chances of booking property in fictitious names.
Apart from the residential sector, the commercial spaces haven’t performed that well either. From high vacancy levels in 2016, 2017 didn’t see much progress. However, rent in prominent sectors like Mumbai, Hyderabad, Pune, Gurgaon and Bengaluru is set to see a steep rise. With changing rules and regulations, the real estate in Mumbai, and the rest of the country is set to see better days in the coming year. A pro-consumer market, real estate developers will have to up their game to win the trust of the consumers.
Though the government’s new measures were considered as radical moves by industry experts, real estate developers who have been following fair practices and transparent dealings were not affected drastically. Despite of all this, the customer’s faith on The Wadhwa Group was not perturbed. Also, the group is on its way to deliver more and has new projects in the pipeline.