The year 2018 looks promising for the real estate sector, thanks to the many positive initiatives and amendments in 2017. A year of reformation in the Indian real estate industry, there were various watershed initiatives, taken by the government of India in 2017, which is going to change the very landscape of the realty sector from 2018. The implementation of the Real Estate Regulatory Act (RERA), floating of the Benami Act, execution of Goods & Services Tax (GST) and approval of Real Estate Investment Trust (REIT) has paved the way for a promising 2018 for the real estate sector, at large. These initiatives usher an era of transparency and trust, which will help this sector in reaching new heights. Studies indicate that the Indian real estate sector is expected to touch US$ 180 billion by 2020. The Private Equity Investments in real estate are expected to grow to US$ 100 billion by 2026.
Here is a blueprint of these revolutionary initiatives taken in 2016 and 2017 on the basis of which such a favorable growth chart is predicted for the Indian real estate industry in 2018 and beyond.
1. Real Estate Regulatory Act (RERA): This act brings transparency to play for the buyer and seller. It is to ensure that delayed project handovers by developers and late payments by the buyers will be history. With the implementation of RERA, a property buyer can get all the details pertaining to a project from the RERA website using the RERA registration number, which will be unique to each project. In fact, the developer can promote a project only after getting the RERA number. Likewise, a property buyer needs to make timely payment to the developer. So, this reform will increase transparency and ensure better investment options.
2. BENAMI Act: Along with RERA, facilitating transparency in this sector is the BENAMI Act. It takes care of all those properties, which are not in the name of the actual beneficiary. This Act had come into effect on 1st November 2016 and had been renamed to the Prohibition of Benami Property Transactions Act, 2016 (PBPT Act). It prohibits BENAMI transactions and makes it punishable with imprisonment and fine. With such an act coming into effect, the buyer confidence has been reinstated in the property market and is facilitating pellucidity in the system.
3. Goods & Services Tax (GST): This uniform taxation system implemented across the country in 2017 will have visible effects in 2018. It will not only bring an even taxation system in the investment property, but will also help to bring down the taxes levied on construction materials and services. All the taxes will be in the form of CGST and SGST bringing about transparency in taxation system and making it comprehensible for the common man. In addition, it will also bring down the overall money spent on taxes, attracting not only domestic, but also international investment in the real estate sector.
4. Real Estate Investment Trust (REIT): Approved by the Securities and Exchange Board of India (SEBI), the REIT will attract investments in the real estate market in India from the domestic and international sphere. People can invest from INR 2 lakh in the REIT.
These initiatives taken from the latter half of 2016 and in 2017 have laid strong foundations for the realty sector in 2018. Along with these acts, the Affordable Housing Scheme by the government will drive the affordable section of the real estate sector. Even in the 2018 budget, the affordable housing scheme has been a beneficiary. In addition, rebate on interest rates, lower home loan rates will also contribute positively to this sector. With these acts in place, a bright and prosperous real estate sector is on cards this year. If you are looking for such beneficial, transparent home deals, then Valmark is a name you can trust. A prominent developer in Bangalore, we are known for providing best home deals and superior quality homes for over a decade. We have already taken RERA number for our different projects and you can view our completed and ongoing projects here. At Valmark, we understand the value of making your own home, the emotions attached with this decision and make home buying a memorable and pleasant experience. You can touch base with our team and let’s help you buy a luxury property in Bangalore, today.