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In the last five years, the real estate industry in India has benefitted manifold. The government has taken several measures to bring about greater transparency in the industry. It is evident that investors are showing more interest in real estate now, as they can gain high returns from the investments. Particularly, policies like demonetization, GST and RERA have brought about a shift in the way business used to be carried out in the real estate industry in India. The user confidence has been rekindled in recent years, thanks to these policies.
Although the government has strived to implement RERA across all the states, it has not been possible until now. It should be noted that many of the states are yet to be notified about the rules and regulations related to RERA. In some other states, the guidelines of RERA have been diluted, causing outrages among the buyers. In the short-term, the real estate industry was hit by the outcome of demonetization and GST. The under-construction projects were subjected to a taxation of 12% till 1st April 2019.
In terms of infrastructure, the real estate industry has benefitted a lot. A number of roadways and thoroughfares have been inaugurated in the last five years. The National Industrial Corridor Authority (NICA) is presently tasked with the execution of five industrial corridors. These will be passing through various clusters of industries, towns and cities. The real estate growth around these areas has already picked up the pace. When these projects are completed, the demand for property around these areas is likely to increase.
Besides, the demand for commercial real estate has consistently increased in the last five years. The NRIs, too, are interested in investing in these projects. As the prices have shown a consistent rise, people are willing to invest in real estate in India. The warehousing and logistics segments have also grown in recent years. However, the long-term impact remains to be seen. The sales figures in the last few quarters reveal that the real estate industry has picked up pace after the slowdown. In the coming months, it is likely to follow the upward trend.
Another important aspect that deserves mention is the affordable housing sector. The government has decided to ensure ‘Housing for All by 2020’ and the developers are now focusing on homes for the middle-income group. Various incentives have also been introduced for the developers engaged with affordable housing projects. The buyers can enjoy relief in terms of interest when they buy these homes.
The government has introduced the Smart City projects, where 100 cities across the country have been selected. This, too, has given a boost to the real estate industry in India. Investors have a great opportunity to buy real estate in India now.
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