Expected outcome for Real Estate in 2018


The Real Estate Regulation and Development Act, is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. The Act establishes Real Estate Regulatory Authority (RERA) in each state for regulation of the real estate sector and acts as an adjudicating body for speedy dispute redressal. It took almost 2 years for the states of India to fully draft and notify their RERA norms. Now every Construction company/Builder and Real estate Agency must register themselves with RERA number to operate their business. Demonetization on 8 november 2017, almost stopped the circulation of black money in the market and GST on Real estate created hassle free and crystal-clear business environment in the economy. Now in 2018, the cabinet finally allows 100 percent FDI in Real Estate Sector, which will allow major international players to invest and sell their products to the residential and commercial customers of different states in India. All the factors like RERA, demonetization, GST and 100 FDI in Construction has given India a safe environment to both investors and customers in Real estate. 2018 is the year of constant and confident yet stagnant market for genuine investors, customers and Real Estate agencies as it will take some time for this sector to have enough circulation demand again.

2018 is bringing professionalism in the Real estate industry. Development authorities of India is also altering its norms and strictly following them with the help of RERA. The investors now are more conscious of their present financial state and are ready to plan safe and appropriate project strategies while investing. The future of real estate in India is going to be more global with safe environment from government to the investors. The Real estate sector will be providing more employment to many people in the security guard and construction services. The sector will be able to increase its residential unit sales in tier 2 cities because of an organized system. This year brings more purpose-customers in the market with new business strategies looking for suitable commercial spaces.

‘Housing for all by 2022’ is one of the main projects for the government and it plans to deliver 10 million houses under this program. Out of 10 million, 95% of the houses are to be constructed for Economically Weaker Sections (EWS) and Low-Income Groups (LIG). As affordability of this segment and the house value is low, the impact of slightest upward cost pressure is magnified and becomes a deal breaker. The current GST rate of 18% coupled with 1/3rd abatement for land is adding huge upwards.

The Real estate sector Regulations in future is going to provide benefits to both middle and lower middle class and service class people. There are almost no chances of Fraud by builders to the customers. Government is trying its best to communicate to the customers through media about the benefits of the Realty regulations. Now almost every Commercial and Residential Buyer/Investor is aware about their respective State RERA and development authority norms. The market is expecting some fair norms this year in terms of rent, which is calculated based on super area. Carpet area is the actual area of any structure to be sold or rented out. After the fair decision by RERA on selling the residential units according to its carpet area excluding balconies, the market is expecting such justice in Renting/leasing also. Unfair eviction also is one of the main problem in leasing/Renting.

100 percent FDI in construction and Retail brand will increase the demand by big foreign firms for both Residential and commercial spaces in big cities of India. The major changes in this sector is boosting up the professionalism and transparency in the industry. 2018 is going to be the year of “a different India” with more planned states. Capitalism will have more meaning as the financial structure of the economy is going to be stronger. Banking System of our country will be providing more loans to both the Seller(builders/investor) and buyer (residential and commercial customer). The market is more stagnant with low home loan rates and RERA safeguarding the buyer against the delays and frauds. It won’t be okay to say that it is the time to invest but yes, it is the time to plan strategies for the possible development that can attract good customers. The market needs more survey and research by Domestic firms on how to maximize the output out of substantial development.

Author: Mr. Shivam Sadana, Managing Director, Sadana Properties

Shivam Sadana is the Managing Director of Sadana Properties, Haridwar, Uttarakhand. He is a RERA registered real estate expert and a Social Real Estate Educator. Shivam is very much inspired by the western professional structure of real estate industry and welcomed RERA (Real estate Regulation Authority) in a very optimistic way.

Stepping out of the shadow and his comfort zone Shivam started a new venture where he introduced the new concept of “Property Management”. Property management is the management of Real estate spaces in case the owner lives away and is not able to maintain his/her property. Property management services include pest control, cleaning services, house painting services, rat control services. Property management helps in maintaining the Property and its resale value.

His vision in the Real estate is to bring knowledge and professionalism into the industry as this sector was suffering a lot due to only profit profession, illegal activity and no proper government regulations.



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