The effect of demonetisation, GST and RERA was not clearly of understood at the time of introduction. However, with the passage of days, people have slowly started to realize the benefits. The entire realty business has begun to shape up after July 17 and improvements are happening quite frequently now.The following are the impacts felt due to GST and RERA:
Predictions 2018: The year 2018 will see the real impact of RERA as the business has started to take shape. There are serious buyers and investors in the market to park their money on projects developed by reputable builders. There is also a strong speculation that builders that are struggling financially will join hands with big builders to further their businesses. In that case, more joint ventures will start developing across the country. The government has also introduced strict guidelines for the existing projects to be completed on time before venturing into new launches. The Pradhan Mantri Awas Yojna scheme has developed a very good response in all the major cities. The scheme has actually helped the first time home buyers with reduced interest on loan from any nationalized bank.
There are various tax incentives that the government has planned to introduce from time to time to boost the real estate business in the near future. Furthermore, the government’s decision to increase the carpet area to 120 sq.m and 150 sq.m has been welcomed by many prominent developers. The MIG-I (income category 6-12 lakhs per annum) and MIG-II (income category of 12-18 lakhs per annum) segments will gain interest subsidy up to 4%. Affordable housing will therefore become a very prominent segment in the near future. Developers will also start focusing on this segment to attract investors from across the country. Along with it, the demand for townships and commercial spaces will increase considerably.
Bangalore Real Estate 2018: This IT city is expected to grow much more than before in the lines of real estate. People looking to invest on lands and flats have increased considerable in the recent past. There are areas in Bangalore where the demand is higher than supply. To bridge this gap, there are plans underway. The metro phase II and III are in progress in many parts of the city. This particular development will play a vital role in the realty sector. The demand for flats in such areas will increase soon. The city of Bangalore is expected to come up with more number of launches in future than in the past. Moreover, the city will become a role model for the other major cities across the country in realty business.