Regulatory reforms brought through the Real Estate Regulatory Act (RERA)and transparency brought about by Goods and Services Tax (GST) will effect consolidation in the real estate sector.
“The consolidation will see larger players peak in strength, and smaller ones getting eroded or aligned with the established ones,” Surendra Hiranandani, CMD, House of Hiranandani told BusinessLine .
“Owing to stringent RERA norms, it is clear that only credible developers who conduct their business with transparency will survive in the future, and will be able to navigate the roadmap,” he said.
“This is good from a buyer’s perspective as one is assured of quality product within stipulated timelines.”
The recent trend in the decline of new project launches has impacted the market, and is expected to gradually find some equilibrium with demand, and prices subsequently picking up pace.
“The current environment presents an opportunity to take the plunge as attractive offers are on, and are available with lower interest rates,” he said.
“If not now, we certainly hope these factors lead to more fence-sitters spring into action in 2018.” The ‘Big Bang’ reforms implemented this year (2017) for real estate sector has brought about significant changes in the tax, regulatory and business environment in the country.
Renewed vigourAccording to Hiranandani, post demonetisation, the introduction of RERA and GST improved the transparency and accountability in the sector, catching the attention of institutional investors who are now looking at Indian real estate with renewed vigour.
Notwithstanding the economic disruption, the commercial real estate market segment remained robust in 2017.
“The office leasing market will continue to remain healthy in 2018 and beyond, reflecting strong employment growth. We expect Real Estate Investment Trusts (REITs) to be launched in India in the coming year, which will provide investment opportunities to smaller investors and private equity players, who are now gearing up to expand their retail portfolio across Indian cities.”
Co-working spaces are also expected to see a spike in demand in the coming years, as they are becoming platforms for collaboration, exchange of ideas and higher networking opportunities.
Long-term prospectsRealty continues to remain positive. “As per reports, the potential employment opportunity in the real estate sector is expected to increase by more than 80 per cent by 2025. The share of the real estate sector in India’s GDP is expected to double by 2025. Not only will this result in an increase in job opportunities, but will also have a cascading effect on various ancillary industries, which are dependent on the real estate industry.”
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.