Indian Real Estate industry has been going through unprecedented reforms and challenges. Most of the reforms have been proved to be beneficial for the industry though the impacts of the same might not be evident immediately. Schemes like the introduction of the Pradhan Mantri Awas Yojana (PMAY), infrastructure status given to affordable housing segment, implementation of Real Estate (Regulation and Development Act (RERA) etc, have brought the much-needed image-enhancement in the industry.
The trend in the industry has been shifting toward affordable and mid-segment housing, slowly but surely. In the past few years, we have seen many developers have launched affordable residential projects across geographies, and if we believe the Industry experts, this is where the demand would continue to increase. The recent decision by the Government to grant Infrastructure Status to Affordable Housing segment and the lower Goods and Services Tax (GST) rate, have given this segment huge boost. "Affordable housing is the talk of the town and we will definitely see maximum investment in this segment in 2018" – says Mr. Amit Ruparel, Managing Director, Ruparel Realty. Among other reforms, the implementation of RERA has definitely been a game changer for the real estate sector. RERA Act which came into effect from May 1st, 2017, was kind of a stepping stone to bring a notable change in the way the real estate sector perceived. Consequent to many factors, real estate sector suffered from serious image issue prior to RERA implementation; however post RERA, the credibility of the eminent real estate developers has been re-established and buyers are in the process of regaining their confidence in the sector.
In 2019, industry experts anticipate a lot of foreign investment in the Indian real estate sector. As the home loan interest rates are running low and there are a plethora of deals and discounts being offered across property segments, there has never been a better time to invest in real estate, before.
Though the industry is showing strong signs of consolidation and improvements, there are still a number of questions that loom large. As high Goods and Service Tax (GST) rates have discouraged homebuyers from buying under-construction properties, for some time now, they are preferring ready-to-move-in properties which are exempted from GST burden. Recent discussions on the revision of the GST rate are expected to be fruitful in 2019 and hence the demand is expected to rise in coming months.
2019 is going to be the year of new possibilities. The second half of the year is expected to see new project launches and cost revisions might happen, too. The indications are surely toward an increase in the demand and hence the industry is expected to see major turnarounds.