2016 has been a remarkable year for the Indian Real Estate especially as it has taken major steps this year to move towards International property standards. A number of factors combined to make the real estate industry more transparent and fair. A spate of funding activity has further galvanized the sector.
The Indian property markets have always suffered perception problems of being too opaque and complex. A number of actions taken by the authorities in this year have made it better to invest in real estate.
One such step was the discontinuation of currency notes of 500 and 1000 denomination. This was a very good news for Indian Real Estate. As you already know, Square Yards stands for a high level of transparency and clear financial conduct. In fact, our main motive while starting Square Yards was to build an accountable and transparent ecosystem for real estate transactions. This move will bring in the much-needed government support towards an organized real estate market. The primary markets are expected to do much better because of low exposure to cash transactions. But the long-term fundamentals remain as strong as ever with added growth projections due to positive efforts of the governments.The market will now be more transparent and benefit the end user.
From 1st November 2016, Benami Transactions (Prohibition) Amendment Act, 2016 has come into force, putting stringent measures into check for illegal transactions in real estate.
This year, property markets saw an influx of record levels foreign capital. Signaling good prospects ahead in the Indian property scene. It also shows the confidence of major financial players in the Indian real estate markets.
Stock Exchange Board of India (SEBI) has come up with more clarifications and information for REITs and INVITs some of which are expected to be listed in the next year. Funding in real estate will turn out to be much better as the value will get unlocked and builders will have more to spend on projects.
Rising sentiments from Infrastructure space – India’s infrastructure spend has crossed over lakh crore rupees in the current year. A major revamp of Road, Rail and transport facilities augurs well for the property markets as it has a direct impact on its prospects.
Make in India is another effort by the government to boost the domestic manufacturing sector. This has boosted prospects of real estate in many tier 2 and tier 3 cities