Increasing Opportunity in Indian Real Estate Market Outlook: Ken Research
by Ashish Kumar Market ResearcherIndia has been investing in many sectors to further its
economic performance. One such sector is the real estate sector in which the
huge population is seen as a growth driver. Recent years have seen many new
developments in technology and trade with foreign investors increasing their
interest in India. There have also been a number of significant policy changes
and the effects of the imposition of such laws are currently debatable.
However, real estate industry research
and market reports suggest that 2018 will be a favorable year for the
Indian real estate market which will benefit from recent reforms.
Real
estate market research reports bring out the fact that in 2018 there are several challenges
and opportunities for growth especially for the home buyers and home
developers. All this comes after a very irregular movement of the industry in
2017 when too many things happened. The effect of demonetization was still
visible in 2017. The Central Government
in the Union Budget 2017-18 introduced ‘Housing for All by 2022’ which comes
with a number of benefits like availability of prime land parcels, access to
funds and fast approval of incentivizing for the affordable housing projects.
The government also introduced RERA to bring complete transparency between buyers
and sellers. This act has raised the interests of home buyers and confidence
among the consumers. Furthermore, the introduction of GST in 2017 aimed to
dismantle multiple tax system and the effects were evident as in 2017, 30% less
units got sold out compared to 2016.
For 2018 there is some expectation from both buyers and
developers that new government policies will boost the housing sector. India is
working on promoting Real Estate Investment Trust (REIT) and there is also
projection of receiving Private Equity (PE) investment of about USD 4 billion
during the fiscal year. As far as listing down the metro city that would yield
a good return to developers, Bangalore tops the list.
RERA though good for the public, presents a very different
scenario to the developers. They have to face the restriction to new
construction and instead complete the existing ones within the deadline. As a
result 2018 is expected to witness major sales and delivery in the residential
market.
Since the establishment of GST the real estate sector has
been facing huge roadblocks due to high GST rates. The government needs to
realize that home buying is a huge investment and such unfavorable tax
conditions are detrimental to the industry. Estimates show that the government
should bring down the GST rate 6% to encourage buyers to invest in new
projects. However, the government has taken a few steps to change the scenario.
These include various tax incentives and reforms like interest subsidy.
Input costs are also on the rise. Since real estate is a
capital and labour intensive industry, a rise in the cost of labour will create
issues. Cement companies have also raised prices creating problems in project
development. The government is trying to compensate by launching schemes like Pradhan
Mantri Awas Yojana which aims to build houses for everyone by 2022.
Major developments have affected Indian real estate recently.
The government has attempted to maintain a healthy environment for everyone by
launching schemes and subsidies. It has also aimed to increase transparency in
the market by furthering RERA which promotes clean capital. Such steps that
incorporate favorable government schemes, FDI and transparency are expected to
drastically change the future of the real estate sector in India starting from
2018.
Key Topics Covered in
the Report
Real Estate Market Research Reports
Real Estate Industry Analysis
Market Research Reports for Real Estate
Real Estate Industry Research Report
Real Estate Market Research Reports Consulting
Real Estate Business Review
Real Estate Industry Research and Market Reports
For more information on
the research report, refer to below link:
https://www.kenresearch.com/manufacturing-and-construction/real-estate/SC-97-38.html
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-124-4230204
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Created on Jul 2nd 2018 05:22. Viewed 358 times.