Realty Plus - - Cover Story -

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.

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