The year 2016 has been a defining year for the Real Estate markets as several executive decisions stimulated the environment in its favor. An overall growing economy coupled with good monsoons (a major concern for an agrarian economy), is always good news for any property market. Moreover, inventory levels have stabilized as sales have picked up and trends for ROIs have improved as well.
Following are some of the major regulatory decisions which shaped the growth of property market in India in 2016.
Smart City Mission
2016 marked the beginning of the ambitious Smart City project aimed at urban rejuvenation and improving city infrastructure. A list of 98 cities is already out which are going to be part of the smart city mission.
RERA – The Real Estate Regulation Act 2016 is a landmark legislation which has set the tone for effective regulation of Real Estate in India. At the moment, states are coming up with norms and set up guidelines for regulatory bodies.
Housing For All – The Indian Government’s Housing for All by 2022 program has shown great progress with affordable housing now getting major traction amongst real estate players. 2016 saw a number of affordable housing projects being announced by developers, much to the relief of home seekers looking forward to houses at reasonable prices.
The Goods and Services Tax – This is another major reform which will have an incremental effect on real estate market. It was expected to be brought in force by April next year, however, the final news is still awaited. Once in force, the GST will boost the country’s economy with the faster movement of goods and amalgamation of several different taxes into one.
With these measures in place, a sound system of checks and balances seems to have been put in place. This has encouraged end users to enter the markets with full confidence. Home buyers have taken advantage of the realty situation and lapped up opportunities to make key investments with bright future prospects.