The real estate industry in India witnessed a number of changes in the last couple of years. The inception or RERA and GST in the real estate sector have shaped the present condition of the industry to a great extent. You might be interested to know what 2018 has in store for the real estate industry. After the game-changing strategies like GST and RERA, the government may be implementing more economic measures in the industry. Have a look at what 2018 is likely to bring for the real estate industry in India.
The RERA (Real Estate Regularity Act) was enacted by the government on 26th March, 2016. Finally, this was implemented on 1st May, 2017. This act was passed in order to bring more transparency in the real estate industry. It makes the real estate companies more accountable to the buyers. Evidently, the act protects the interests of the buyers, increasing the investments in the sector. The real estate companies need to register themselves with RERA. The registration process is still under way for many companies. A number of states are yet to notify the rules that come with the act. For the buyers, it is necessary for the developers and promoters to get their projects registered under RERA. As a result of the act, the sector is expected to become more streamlined in future. This will give a boost to the real estate industry in India in 2018. Besides, RERA can stimulate the REITs too. These have been set up to increase the investment in the commercial properties in India. It is necessary to regulate the sector, eliminating the risks that will eradicate the risks. RERA will help in enhancing the overall business ambience in the sector.
Apart from this, the government has taken measures to remove multiple levels of taxation by implementing the Goods and Services Tax (GST). Under this act, a single tax has been implemented on the sector. This will remove the complicated taxation process, where a single tax of 12% has to be paid.
Apart from this, the demonetization in 2016 has proven to be beneficial for the sector. Real estate was known to be one of the areas to store black money. This has been eliminated to a great extent as a result of the move. The policy affected the market sales to a great extent. However, it had a big impact on the secondary market transactions, including land deals and luxury properties. At the beginning of 2017, the condition improved to a certain extent. Therefore, demonetization has been a positive move for the real estate sector. In 2018 too, this trend will continue to improve the condition of the real estate sector.
The economic policies taken by the government in 2016 and 2017 will deliver the benefits for the real estate sector in 2018. The market is on the way of recovery, and will get back to normal health in the months to come. After the existing projects are completed, it is expected that the developers will increase the supply. It is also expected that the rate of GST in the real estate sector will be reduced from 12% to 6% in 2018.
