After the introduction of GST and the implementation of Real Estate and Development Act, the real estate sector was in a state of shock. According to some reports, 2018 is likely to bring about a positive change in the market.
The RERA Act was introduced to bring transparency and create investments in the real estate sector. RERA is likely to institutionalize the process of selling the real estate through known real estate companies.
The real estate developers will try to focus on completing the existing projects and generate cash flows from the sale of completed units. The end users are also interested in buying the completed units and not under construction ones. This will lead to lower unsold inventory and increase the cash flows.
The projection for the real estate sector is good in this year. The demand for residential and commercial real estate is also increasing. The consumers from the upper-middle-class category in the metros are enjoying luxurious residences that are equipped with best amenities. The projects with brand luxury names such as Trump Towers are now in Indian cities such as NCR Region, Pune, Hyderabad, and Kolkata.
The government is also providing interest subsidy to the home buyers under the scheme of Pradhan Mantri Awas Yojana. The residential sales are picking up as the interest rate on home loans have relaxed. The private equity investment in the real estate is likely to cross Rs 36,590 crore as compared to Rs 35,190 crore in January-September 2017.
India’s real estate sector is expected to reach US$ 180 million by 2020. The reforms such as RERA, GST, and liberalization of FDI norms have increased the confidence of foreign and Indian investors.
A regulation like RERA is needed to restore confidence in India’s real estate sector. The Real Estate (Regulation and Development) Act is an Act passed by the Indian Parliament. RERA intends to protect the interest of the home buyers and increase the investment in the real estate sector. This information is as per the report by a real estate search portal. If you are looking to buy a property, invest your money in Hiranandani properties such as Hiranandani Fortune City, a global township project in Panvel developed by Hiranandani Communities.