Real estate sector to benefit from affordable housing scheme, RERA and GST in the long run.
Accepting change is often the most difficult part of making any decision. As and when the government decides to reform any existing law or practice, a lot goes into forming and implementing those changes. The real estate industry saw some major changes within a span of the last 6 months.
CII Realty 2017 Real Estate 2020 - Footprint for the Future was held in New Delhi on the 19th July, 2017.The event marked the presence of eminent Speakers from K Raheja Group, SARE Homes, Select Infrastructure, Hiranandani Group, HDFC, American Express, SBI and others with presence of over 200 delegates from Real Estate Sector.
Addressing industry leaders, Pinaki Misra, Member of Parliament & Chairman of Parliamentary Standing Committee on Urban Development, he said, "The sector is facing slight challenges but with the implementation of GST, it would be beneficial for all in the long term. He also said all states must work in tandem to implement RERA to ensure its success."
Speaking on the challenges, he further added that there are certain problems that can be eliminated with digitization that would accumulate all the specific land records. He also emphasized on abolishing multiple clearances that would give pace to realization.
In his address, Rajiv Ranjan Mishra, Joint Secretary, Ministry of Housing and Urban Affairs, Government of India, said, "There is need to understand the consumer sentiment for safe investment. Developers should focus on developing buyers' confidence with timely delivery of possession. States should actively implement construction timeline. Affordable Housing will get much coveted infrastructure with boost in housing finance and improve infrastructure."
Speaking in the meet, Anshuman Magazine, Chairman, CII Realty 2017 & Chairman – India & South East Asia, CBRE, said, "This are very interesting times for India's real estate sector. Never before had we seen so much activity aimed at boosting the segment. Various government reforms like demonetization, RERA and GST are impacting the overall sector," Magazine said. He also stated that the reforms are causing inconvenience and pain, but it will be good for everybody in the long run. The implementation of these policies will bring about transparency and efficiency which in turn will lead to an increase in consumer and investor confidence.
In the coming years, we will witness further traction towards infrastructure which will infuse growth and create more opportunities for the sector. He also added that, medium to long term investment will increase which will create a remarkable difference for the real estate market. He further added as the market adjusts to the new reform and way of doing business, the future for the sector looks very promising. He added that with the objective to create awareness on RERA and GST, CII Northern Region has been facilitating training programmes across Northern States in coordination with the State Governments.
Slowly but ultimately this sector is moving towards being organised and transparent. The prominent personalities are hopeful of a brighter and better version of the face of the real estate.