Prateek Mittal, Executive Director, Sushma Group & Chairman Real Estate and Infrastructure north Indian Regional Council, Assocham.
With the transient uncertainty over new policies such as RERA and GST getting over, the future of Tri-City’s real estate industry certainly looks positive, if not bullish. As clarity on policy issues has emerged, the positive impacts are quite apparent. With new regulatory framework policy and taxation laws coming into force – these landmark initiatives have enforced hitherto unprecedented transparency and accountability.
Zirakpur especially has become the center of attraction for most of the real estate developers because of its strategic location. Its proximity to the international airport has given an unprecedented boost to the commercial development. The commencement of the third phase of airport road development is sure to make Zirakpur the hottest property. Zirakpur authorities also have massive plans for the development of Zirakpur and providing infrastructural facilities like underground cables and a 100-acre park to make it a model town with all modern amenities in the coming months.
The buyer confidence that was marred by project delays, non-deliveries, and litigations, is now at an all-time high as the customer has faith in the system. While the GST ensures transparent pricing structure, RERA has compelled developers to follow highest standards of performance.
The consolidation thus happening will eventually lead to the sustenance of only those players in the long run who are able to comply and be transparent & accountable. Only serious players are now active in the market ensuring better quality and good deliverables to the customers. This has lead to a reduced supply of ready to move in properties as the older projects have got over and the new ones are under scanner. Simply put – home buyers are in driver’s seat.
Another big boost in the real estate sector is the PradhanMantriAwasYojana, the programme by Government of India to ensure “Housing for all by 2022’’. This has encouraged the first time buyers to take a plunge into the real estate market. PMAY is one of the factors driving the affordable housing segment. Affordable housing has seen good traction with the PMAY linked benefits for customers and tax benefit under section 80IBA for developers this is one of the reason for several bigger organized players to focus on the affordable housing space.
Government policy to allow withdrawal of 90% of EPF for home purchase has added to the delight of the homebuyers so has the reduced interest rates on home loans.
The renewed real estate has not only delighted the genuine homebuyers but the industry is also witnessing a steady rise in investment inflow from both foreign and domestic institutional investors. The increased transparency has helped from developer’s standpoint that sourcing funding from banks has become much easier now.
Reality sector has come a long way from being highly unorganized and uncertain to transparent and accountable. This has not only eliminated unscrupulous means of trading but in long run, will also keep a check on cascading inflationary move. For those who wish to make the most this government induced positive business environment, this is the right time to buy a home.