2016 was quite a eventful and remarkable year for real estate. Developments like Real Estate Bill, GST, Demonetisation drive, RBI rate cuts, Benami Property act left a long lasting impression on the real estate sector, giving a positive ray of hope that things will be better in 2017. So here are some views of the real estate industry experts’ on their outlook about 2017.
Kishore Bhatija, Managing Director, Real Estate Development, K Raheja Corp
“We look forward to welcome 2017 with the hope that the issues of the much-needed realty reforms namely, ease of doing business and recognition as an industry, gather momentum. The Benami Property Transaction Act, GST, IT Policy and RERA will congregate to change the way our industry functions leading to more transparency and regulation. This will also lead to better inflow of FDI’s and better prospects for the industry. With sufficient boost from the government, the realty market is expected to see good times ahead.”
R K Arora, Chairman, Supertech Ltd
“There have been some significant developments during the course of the year that will have a long lasting positive impact on the real estate sector. The notification of RERA will usher more transparency in the sector. Moreover, the successful roll out of much awaited GST in the next financial year is expected to lessen the tax burden on developers on input items such as cement and steel by removing multiple layers of taxation and instituting the tax credit system. Also, while the demonetization move is likely to have some impact on sales in the near term – especially in the secondary market where cash has a dominant role – the measure will benefit the real estate sector in the long term. It will help put an end to the massive cash based transactions in the sector, force small builders to offer realistic and not inflated prices, and reward those developers who offer quality projects with strict adherence to highest standards of corporate governance and transparency.
Last but not the least, the Prime Minister Awas Yojana to provide “Housing for All” by 2022 is a mega opportunity for developers across the board. The New Year could well see the beginning of large scale construction for affordable housing projects across the nation.”
Manju Yagnik, Vice Chairperson, Nahar Group
India is on a brink of a new era, with foreign investment rules, RERA and the emerging smart cities is all summing up to an aspiring 2017 for the realty sector. With such initiatives taken by the government, we perceive a more level playing field for well-known and reputed realty brands. This will improve market sentiments and increase home buyer confidence within the industry. It will also make it more attractive as an industry to invest in, given higher transparency levels and ethical business practiced by various stakeholders. We also foresee more investments by FDIs and foreign investors as well as NRIs who will be happy to invest in properties back home.”
Ashudeep Batra, ED, Exotica Housing
“Hopefully 2017 will be year for credible developers and genuine home buyers only. Although RERA could be a reason of price hike but we hope to get lower interest rate and separate tax slab for industry. Demonetisation could be game changer if real estate gets industry status and govt ensure easy funding. 2017 will be year of delivery too as housing projects are in phase of completion and will bring serious buyers back in industry.”
Suresh Garg, CMD, Nirala World
“2016 was a remarkable year for industry when the entire industry collectively decided to focus on delivery of under construction projects rather than new launches. No doubt year end became promising and I hope 2017 will follow the same. Market sentiments will touch high with delivery of projects. Provisions of escrow accounts, RERA, GST, Demonetisation, Digital payments will affect positively. But our only demand is to provide status to we real estate and single window system for project approvals so that we could get easy funding and avoid unnecessarily delay in projects.”
Pawan Jasuja- Director, Finlace Consulting
“2016 was a roller coaster ride for real estate. Amid RERA and buyer’s protests across India, honorable courts of India emerged as the biggest shield for home buyers and shattered many big names. This made entire industry to take immediate action in order to complete projects and resolve consumer’s grievances at the earliest. 2017 would be a clear sky for industry when RERA will applicable on projects and authorities will be part of development and funding of projects. Apart from lower emi, industry will get reliable players and actual home buyers. People will be responsible for commitments and will be now prosecuted before concerned authority.”
Pooja Kundu, Director, PropCurve solutions pvt ltd.
“No need to say that 2016 was full of ups and downs in industry and pushed developers towards due responsibility and answerable for commitments.
2017 will be more open for real estate be it developers or buyers or consultants. The industry will get a full fledged regulator. Under RERA all will be responsible for said commitments either on payment or deliverables. Hopefully GST and demonetisation will bring down real price since lower tax and interest rate are on cards.
Mayur Shah, Managing Director, Marathon Group
“Going by market research and expert analysis, 2017 will have the Indian real estate sector witness a pragmatic change and buyer enthusiasm. While 2016 remained low key, the coming year will be promising for buyers and developers alike, overthrowing the long-established downswing period. With demonetization, the liquidity in banks has gone up and hence interest rates are expected to reduce in the days to come. This will encourage home buyers to come ahead and invest in property.”
Navin Makhija, Managing Director, The Wadhwa Group
“In 2017, the expectation of the buyers and developers ought to rise as the sector has witnessed lots of new government policies. These policies will help the industry to be more organized and will provide a boost to both the residential as well as commercial real estate segments.
Demonetization has sentimental impact, with money coming in the banking system. Home loans to mid income will be easily accessible and at cheaper rate.
The RERA act will strengthen the association between a buyer and a developer immensely. The act will consist of a registration mandate, and strong penalties will ensure that the home buyers feel secure about their investments and further enhance the residential sales. It will play a significant role of a supervising authority for any land or home deal that takes place.”