The real estate market takes big strides in terms of policies.
The year 2016 was quite eventful for the real estate sector. While the overall market continued to be subdued, an array of events, led by the enactment of the real estate (regulation & development) act 2016 (RERA), marked the period. Other micro and macro initiatives such as the launch of the smart cities, GST, incentives for affordable housing and ‘housing for all by 2022’ added to the overall trigger. The budget 2016 went on to remove one of the contentious issues pertaining to dividend distribution tax (DDT) in order to make REITs a reality for the Indian market, which is yet to witness the launch of its first REIT.
All this, along with the demonetisation drive at the end of the year, will in all likelihood be a game changing proposition for the market, which has desperately looked for a much higher degree of transparency and governance in the past. In fact, the amalgamation of all these steps could be termed a major disruption that will redefine the market in the longer term. This could script a roadmap for its next level of growth and pave the way for a market where consumers and investors will be much more confident. Experts are of the view that as the market passes through this big transition, there could be some unsettling impact both on the supply and demand side in the short term.“For the real estate industry, 2016 saw the biggest changes in decades, especially on the policy front. Some of the biggest game-changing policies like GST and RERA have cleared multiple hurdles and are on their way to full implementation. The demonetisation move has caused considerable turmoil; however, along with the benami transactions act, it promises to bring greater transparency in the real estate sector,” says anuj puri, chairman & country head, jll India.
“We saw the Indian real estate sector taking big strides on the policy front. All this will bring in transparency and infuse more depth into the market once implemented effectively. This will consolidate the market in favour of reputed developers who, over the years, have built a credible track record for themselves,” says gaurav gupta, director, omkar realtors & developers, Mumbai.
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January 02 2017