Group CEO, PropTiger.com, Housing.com and Makaan.com
After a spate of reforms, the real estate sector in the country looks to regain its mojo in 2018. The good news has begun flowing in.
During FY17, investor wealth in real estate registered an impressive growth at 8.62 percent to reach Rs 60.25 lakh crore, up from Rs 55 lakh crore recorded in the preceding financial year, as per the Karvy India Wealth Report.
The research study further forecasts that these numbers will double to Rs 121 lakh crore by FY22.
The increasing levels of transparency and accountability facilitated by regulatory reforms such as the Real Estate (Regulation & Development) Act, 2016, and the Benami Property Act have started to bring in results. An average homebuyer is now assured that his or her rights will be protected, and, at the same time, the developer community is set to see a shakeout where only high-quality developers will survive, which is ultimately good for the entire ecosystem. The sector seems to be settling in post the initial dislocation caused by the implementation of RERA.
- During FY17, investor wealth in real estate registered an impressive growth at 8.62 per cent to reach Rs 60.25 lakh crore, up from Rs 55 lakh crore recorded in the preceding financial year.
- The increasing levels of transparency and accountability facilitated by regulatory reforms such as the RERA 2016, and the Benami Property Act have started to bring in results.
- The advent of GST has also proved to be a blessing in disguise for the property sector. The volume of unsold inventory is slated to go down as most developers have shifted their focus to completion of existing projects.
- Amid all these developments, affordable housing would be the real game-changer for the residential real estate sector…The power of affordable housing is evident from the sales numbers clocked in Gurugram in the second quarter of FY 18.
- In terms of project financing, a slew of institutional investors have geared up to grab a piece of the pie of this fast-growing market.
The advent of GST has also proved to be a blessing in disguise for the property sector. According to Fitch Ratings, the volume of unsold inventory is slated to go down as most developers have shifted their focus to completion of existing projects as opposed to the launching of new projects. Many have wondered how GST is contributing towards this trend. It is in fact due to GST that buyers are now opting for ready-to-move-in properties as they are more tax efficient.
Amid all these developments, affordable housing would be the real game-changer for the residential real estate sector. The Government has set an ambitious target of building one crore homes in the rural areas by 2019 and Rs 23,000 crore has been allocated towards this mission under the Pradhan Mantri Awas Yojana (PMAY).
Taking a cue from this, real estate developers, too, are focusing on this segment. The power of affordable housing is evident from the sales numbers clocked in Gurugramin the second quarter of FY 18. In this otherwise premium real estate market, 60 percent of the sales were contributed by units priced below Rs 25 lakh.
As the supply of affordable housing aligns with demand, millions of Indians will be able to enter the real estate market purchasing homes for end-use, and that is going to boost the sector like never before.
In terms of project financing, a slew of institutional investors have geared up to grab a piece of the pie of this fast-growing market. In April 2017, HDFC Capital announced its intentions to invest as much as Rs 2,000 crore in the affordable housing space. Recently, KKR India Asset Finance pumped in Rs 200 crore in Signature Global’s affordable housing project in Gurgaon. IIFL has also announced aRs 3,250- crore fund for affordable housing and there are several other financial institutions such as LIC, IFC and Kotak Realty Fund which are exploring avenues to invest in affordable housing projects.
It seems like this New Year is all set for “Bringing On Back The Good Times”, stealing from the title of the famous song by Love Affair.
75F launches Network Operations Centre
Bengaluru, December 1, 2022: Building management solutions provider, 75F, has launched its Network Operations Centre (NOC) — an initiative by...
BPTP Group organises Winter Carnival to showcase its Gurugram, Faridabad projects
Delhi NCR: BPTP Group showcased some of its developed residential projects, Astaire Gardens and District 1, located in Gurugram and...
Seek changes in the Act: HARERA Chairman
Gurugram, November 29, 2022: A day-long NAREDCO Haryana Real Estate Summit 2022 & Buyer-Seller Interface held on Tuesday at Gurgram...
Frame Model Code for Construction Activities: HSPCB Chairman
Gurugram, November 29, 2022: Chairman Haryana State Pollution Control Board (HSPCB), P Raghavendra Rao on Tuesday urged the National Real...
Bhumika Urban Square Mall set to open
Udaipur, November 29, 2022: Bhumika Group’s Urban Square Mall (Phase-I) in Udaipur is set to open on December 4, 2022....
Blanket implementation of SC order may delay 1.5 lakh homes’ registries in Noida, Gr Noida; builders may go to NCLT: Credai NCR
NCR, November 29, 2022: In a meeting held on Wednesday, the real estate developers appealed to Noida and Greater Noida...
New Launches4 weeks ago
Akasa Coworking spaces leases space to three more companies at its Noida center
Report4 weeks ago
Retail leasing up 114% Y-o-Y, crossesing 3.4 mn sq.ft. in 9 months
Guest Column2 weeks ago
Grade A office spaces, SCOs, high-streets – Rise of Commercial RE post-pandemic
New Launches3 weeks ago
Ashiana launches last phase of Umang
Developers Speak3 weeks ago
Customers’ interest shifting from High-rise Buildings to Plotted Development
Developers Speak4 weeks ago
North Goa turning into a bustling ground for Concept Tourism after MOPA Airport
New Launches4 weeks ago
Gaurs announces mixed land use project
New Launches3 weeks ago
Euro Pratik launches new product, Cassa 4