Indian real estate has always come up with something unexpected and the same has been observed in the year passed and same but something too good is expected from this year.
How was 2017 for Real Estate?
It can’t be said that it has been a year of loosening but I think a year of hopes for the buyers. The reduced prices, the clarity in the transaction procedures and the reduced intermediary taxes have given new hopes for the buyers that have been waiting for long to buy a new home. Somewhere it has been observed that the high-end products have come to the affordable sections and numerous new projects have also come up such as Godrej Properties Sohna and Trump Tower Gurgaon.
2017 has been a mute year for the real estate developers. Basically, this year has set the benchmark for this sector. The implementation of a number of new rules and laws has made the entire realty firm flipped. Demonetization in November 2016 and then RERA and GST in the first quarter of 2017 have come up as a cyclone in real estate industry.
No doubt that it hasn’t been a so good year for the buyers but yes definitely there is number of buyers who are holding back for the anticipation of the regulatory changes. The triple effects have offered a sustainability, continuity, and transparency; far much needed in this sector. Connectivity was also focused to be worked for and the New highway connectivity in Delhi NCR has been thought out to work on.
Points got noted in 2017:
- Earlier there was less demand for housing because of the high prices.
- People were more involved in buying resale properties rather than the new ones.
- Also, the mediator between developers and the buyers did not enjoyed a good time.
What will New Year 2018 bring?
Now when New Year has come up, people are hoping more from 2018. It is expected that this sector will grow more now. The initiatives taken in the past few years will shape up in this year. Be it an affordable property, joint ventures, high- end development, commercial or retail; every type will rejuvenate.
In this year, completion of the projects or I can say the pending projects will be prioritized rather than launching the new ones. Due to the triple effects of Demonetization, RERA and GST 2018 looks promising for the good supply of houses. In order to achieve this goal, developers are even coming up with new techniques and are planning to remodel their old techniques and also add some new to it so that the scope for work increases. More amenities and features will be added on and to be worked on.
Also, with the government efforts to boost the affordable housing can get into more balanced form. Also, the number of tax incentives will go to attract more developers to come in competition. Affordable housing will, therefore, become an imperative sector in every developer's portfolio in 2018 because of the Rules in RERA. Apart from this, they will specialize themselves in the various segments also such as plotted developments, residential projects, townships, and commercial spaces. Developers in 2018 will now work on each sector looking out at the ultra benefits of doing the same.
Changes to be expected:
- The regulatory framework for real estate is no longer a matter of conjecture.
- People will go more for the completed projects rather than the one under construction or not yet started.
- Plots can be assumed to be on good sale, as you can make the home as per your concern.
Point to be noted:
What will be the GST on the new house?
- 18%: Goods and Services Tax (GST) rate on the purchase of real estate (both residential and commercial).
- 12%: This will be the effective rate of GST that you will have to pay if you buy an under-construction property where only two-thirds of the property value is considered for GST; one third is considered the cost of land.
Indian Real Estate Forecast of 2017 and as well as the year 2017 was an action-packed for Indian real estate, where the series of new rules have slowed down this sector. Not actually slowed down, but rather cleaned up this sector somehow. Buyers trust has somewhere grown. The year 2018 will surely go to be a promising year where the mandatory reforms will make the good points for the buyers and the expected growth. Developers will change their work pattern and will go smoothly too.