Leader: We’ve highlighted the challenges and opportunities for property developers and home buyers in 2018.
2017 was a roller coaster ride for the Indian real estate sector. The impact of demonetization was visible in 2017. The central government in the union budget 2017-2018 presented “Housing for All by 2022, which had several benefits such as access to funds and land parcels. Then later on the government introduced Real Estate Regulatory Authority (RERA) to bring transparency between sellers and buyers. This act has increased the confidence for home buyers.
However, these are the hurdles and opportunities for real estate sector in India in 2018:
Existing Challenges of Buying a Property in India
Confronting the Regulatory Pressure:
In 2017, there were regulatory standards by the administration which affected the real estate market which had its pros and cons. Besides, in 2018, confront the impact of RERA by focusing on the ongoing projects. As the number of ready-to-move-in properties will escalate, builders will finish the projects as promised to customers.
The Concept of Single Window Clearance:
Time and again real estate developers face an issue of property clearance. A lot of time is taken to obtain approvals from specialists who take a significant amount of time to answer. Single Window Clearance is the biggest hurdle faced by the developers. In fact, it will increase the task execution as well.
To Get A Home Loan Interest Limit:
Home loan interest tax is a big hurdle imposed on the home buyers. The government has to increase the limit to 5 lakh from the current 2 lakh per annum. This will give the homeowners an opportunity to save cash on the home loan. If the interest on a home loan is fee high, then the demand or property will be lower, creating a rippling effect. Hence, financing of home loan is considered to be a big challenge for the real estate builders.
Rising Input Cost:
Today, the real estate industry is capital and work focused sector. So, any increase in the cost of labour makes issues in the development of the project in focus. At the same time, any uncalled routine with respect to the concrete industry by increasing the cost creates hurdles in the completion of a project.
The GST Rate:
As a gamut of difficulties is evaluated by the real estate sector in India, just two issues have been discussed on a full scale: the destruction of mind-boggling tax structure with the implementation of GST and inventory pile-up by implementing the RERA (Real Estate Regulatory Authority) bill.
Despite the fact that it will require some time for the impact of these progressions to appear, it has provided a ray of hope for the real estate sector.
However, it will take some time to see the impact of these progressions; it has provided a flicker of hope for the real estate sector.
Opportunities for Real Estate Sector:
Major Focus on Selling and Delivery:
In this year, developers will lay razor-sharp focus on selling and completing the existing projects within the stipulated timeframe. This year, we will witness high sales and delivery in the residential market. Having said that RERA has provided opportunities to developers to complete the project by the cited deadline.
Past Year Reforms To Shape The Future:
Until now, several reforms have been set by the government such as RERA and GST, which will impact the industry in 2018. For the home buyers and real estate developers, these reforms will change the face of the industry. In fact, there are few questions from home buyers with respect to the projects under-construction or ready available. With limpidity, home buyers and developers can have an easy business.
Since RERA and Demonetization came into effect, there has been an overhaul in the process of selling and buying a home. Financial institutes and home buyers have opened up the avenue for clean capital. That said, the year looks promising for real estate sector.
Prospects in Bangalore 2018
There will be peak demand for apartments in doddakannelli, Haralur road, marathahalli outer ring road, and embassy tech village.