LOOKING AT THE BRIGHT SIDE
The lows and highs of the year had the industry speculating on the pending growth of the real estate but most industry players have chosen to keep their hopes high. Dr Niranjan Hiranandani – National President- NAREDCO stated that the liquidity crisis NBFC blow, locking up of 70% funds in escrow and postponement in logging sales to save tax burden on under construction property have created urgency to source out alternative fund avenues for the on-going projects.
CREDAI President Jaxay Shah demanded that the GST rate should be brought down from 12 per cent currently to boost sales of under-construction homes. Amit Wadhwani, Co-founder, Sai Estate Consultants Chembur Private Limited recounted, “The introduction of FDI, improved Ease of doing business ranking & REIT have put India on the global investment map with greater influx of cash flow in the sector.” Ar. Yatin Patel, Founder Directordsp Design Associates | Education Design Architects (EDA) presenting a confident scenario mentioned the better performance of the Construction & Building sector with the simplified approval processes across India.
While the CREDAI-JLL study has reported 25 per cent increase in housing sales, according to Knight Frank India, the sales growth in eight major cities rose slightly by 3 per cent to 1.24 lakh units. CREDAI Chairman Getamber Anand attributes the upswing to improved buyers confidence with the implementation of RERA.
While back-to-back rate hikes earlier in the year dampened the buyers’ sentiment, the recent RBI the status quo on Repo rate will help reinforce the confidence of homebuyers. Today, India has jumped 23 places to ranks at 100 in the Ease of Doing Business Index amongst 190 nations, but no such improvement is visible in real estate; however the liberal economic policies are attracting many a global corporation to set shop in India and driving NRIS to invest in Indian residential real estate.
Finding solution to liquidity crunch and lowering of GST are some of the ways to get the sector back on feet and sprint. Fortunately, the consumer confidence is on rise in correspondence to the rising transparency in the real estate. Building on the potential increase in economic activities and need for space, the industry is hopeful of good fortunes in next year.