With the new government policies that real estate sector has witnessed in last year or so, there has been a significant hope for the growth in residential as well as commercial segments for the year 2017. The significant steps that Government has taken in the amendment of the policies have given a bloom to Real Estate industry.
With the RERA Act and the demonetization of the 500 and 1000 currency notes, we can expect to witness positive reforms and sales growth in the residential segment. This is a win-win situation for developers and home buyers. The home buyers can now bet on reputed developers for their property investments and can feel safe with their investments. The sector was earlier known to be unorganised and this Act will definitely bring in more transparency and professionalism into the sector.
FDI in real estate is expected to provide a significant boost to the sector in terms of greater foreign capital inflows. The Government’s ambitious projects like ‘Housing For All By 2022’ and ‘Construction of 100 Smart Cities’ will now get a boost by the substantial participation by the foreign investors. This is an extremely positive step taken by the government and we are happy that it meets most of the industry demands. We now look forward to seeing FDI flow into the sector, thus creating more job opportunities and revitalising the growth of the realty sector.
The Government should try to put in place the single window clearance for building permissions. Faster clearance procedures and quick approvals would largely reduce the handover time and increase customer satisfaction level. These, when implemented, will propel the growth of the sector, the results of which will be seen in the year 2017.
The Government can exempt Income tax for affordable homes built for economy weaker sections and low-income groups. Also, the reduction of service tax will take off huge load off the shoulders of home buyers as they are already loaded with several other taxes.
If these expectations are met, then it would be greatly restorative of the industry’s faith in the Government and the customer’s faith in the builders in turn.
The author of the article is Ashwin Sheth, CMD, Sheth Corp which is a leading developer in the luxury & mid-housing segment of real estate, with a global footprint.