MUMBAI, August 28, 2017 /PRNewswire/ --
Anarock Property Consultants and Dosti Realty offer insights on life post RERA, Demonetization and GST
The saying - "Things that don't kill you make you stronger" encapsulates the current scenario of real estate. The spate of disruption in the form of demonetization, RERA and GST, is slowly giving way to hope and excitement amongst developers as well as buyers.
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Anuj Puri, Chairman, Anarock Property Consultants said, "In the months of July and early August 2017, we witnessed a high number of residential transactions among ready possession properties. This can probably be attributed to the fact that customer and developers were still getting accustomed to the new RERA and GST policy changes as well as implementation of the same. Ready possession projects were preferred, as customers could see what they were getting, save substantially since no GST was applicable and RERA registration was not required for projects that received the Occupation Certificate already. However, now that most developers in Mumbai have received their RERA numbers, we foresee even the under construction residential market gaining momentum. As the festive season begins, developers are gearing up to deal with the pent up demand of the buyers who have been on wait-and-watch mode for a long time, are eager to go ahead with their purchase decision during this festive season."
Below are some of the positive effects of the recent policy changes that have been observed:
- Impact of demonetization, RERA and GST has been absorbed- Most of the tier I developers are now RERA compliant and have gradually realized the benefits that GST will bring in the form of input tax credit. On the other hand, the home buyers now seem to be much more confident as RERA has addressed the core issue of transparency. Attractive schemes and innovative payment plans offered by developers, coupled with the prevalent low home loan rates will encourage home buyers to make purchase decision during this festive season.
- Substantial institutional money has entered residential sector indicating the long term prospect- Residential remained the most preferred asset class in Indian real estate during H1 2017. While overall investments in Indian realty touched $1990 million in this period, the residential sector accounted 54% ($1075 million) of total investments. (Source: Anarock Research). Whilst RERA and GST caused some initial disruptions, it has initiated an era of transparency and financial discipline amongst the developers, and is one the prime reason for robust institutional participation. The substantial money put in by various institutional players reiterates the growth long term potential of residential sector in the coming years.
- Affordable housing is now becoming a reality- Affordable housing has come out of the shadows. It has become the cornerstone of government's policy formulation for ensuring the success of its one of the most publicized program - Housing for all by 2022, as well has emerged as the growth drivers for the developers. Encouraged by the numerous incentives announced by the government to promote affordable housing, developers have deepened their focus towards this segment, thus paving a way for public private participation.
- Smart city initiative is now taking shape- Smart cities too like affordable housing in not just a talking point anymore. One of the most ambitious programs of the government that was announced in June 2015, has now gained momentum.
"As developers, we have witnessed a phenomenal response for our recent friendship month campaign that was done with Anarock Property Consultants as strategic partners in early August 2017. In just around 15 days we achieved approximately 400 + sales. Each year the response has been getting better for friendship month, however we were curious as to how the market would move, given all the policy changes that have taken place over the past 6 months. This positive demand only reaffirms the fact that the Mumbai real estate market is witnessing a positive trend," says Mr Deepak Goradia, Vice Chairman and Managing Director Dosti Realty.
About Dosti Realty:
Dosti Realty has been in the real estate business for over three decades and delivered more than 106 properties till date, providing homes to over 7,300+ families for over 33,500 residents. Encompassing a portfolio of 8 mn. sq. ft. across Mumbai, the company has experience in various development types be it residential, retail, IT parks, etc. Over the years, it has been known for aesthetics, innovation, quality, timely delivery, trust and transparency, values that have built lasting relationships. The company has now expanded to other cities like Pune and Ahmedabad as well.
Media Contact:
Maureeta Lopez
Senior Manager, Marketing
Dosti Realty
[email protected]
+91-9833222056
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