Due to many reasons the homebuyers in the country had lost faith this industry. However, in the year 2017 the Government came up with many new things like RERA act, GST, interest rebate in Pradhan Mantri Awas Yogna etc which helped in restoring the faith of the homebuyer in the Indian Real Estate industry. These initiatives that are taken by the Government in 2017 will surely make 2018 a much better year for this industry.
The Government schemes and programmes for 2018:
The Real Estate (Regulation and Development) Act, which is popularly known as RERA has surely brought a lot of transparency in this sector. Due to this act the homebuyer has got more power. This will surely encourage the homebuyers to invest in the different Housing Schemes. This act will curb illegal and fraudulent activities. They will also prevent the project delays and the investor will have better investment options. The small players in the industry are likely to join the bigger name is the sector and provide successfully complete projects to the buyers.
The Goods and services tax that is the GST brought uniformity in the taxation system of India. This act will surely have an impact on the real estate sector. There will be uniformity in the taxation system of this industry and it is being assumed that the total money spent on taxes in this industry will also get reduced. The GST has also helped in resolving the problem of double taxation.
SEBI has given approval for REIT, that is The Real Estate Investment Trusts. This will encourage domestic and international investment in this industry and will help in more growth and development. It should be noted that REIT will bring about more transparency and less risks and will also help the person get better returns.
The government is expected to come up with a number of affordable housing schemes for the weaker section of the society. The government has also floated schemes like housing for all by the year 2022. The buyers will also get the advantage of low home loan rates. The demonetisation has also helped in curbing the investment of black money in this sector. It already showed a positive effect in the year 2017 and it will surely help in the growth of Indian real estate market in 2018.
What can you conclude from the overall steps taken by the government?
From the overall measures that the government has taken in this sector one can say that the future is bright. In 2017 the industry saw a positive growth and this is expected to increase in the new year. There is much better transparency in the various transactions in this sector.
This has helped in increasing the confidence of the homebuyer. The sector can expect some good investment from not just domestic mediums, but also from international investors. With the increase in digital transactions and a more buyer friendly sector one can be confident that this sector is surely going to see major positive growth in this year.
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