Some amendment is expected with an inclination of a the buyer in the Urban Real Estate market in the country towards the second half of 2017. The RERA (Real Estate and Regulatory Act) and GST (Goods and Services Tax) is believed to modify the attitude of the buyers.
As per January-June period fruition of the urban property market with Polestar being on affordable housing was quite notable. But since the RERA and GST regime hoot in, there has been a radical fall on virgin projects nearly 41% in crowning eight cities that enclose Kolkata, NCR, Pune, Mumbai, Ahmedabad, Chennai, Bengaluru, and Hyderabad.
In May and June, the main objective of developers was on RERA compliance with trotting up of construction of tentative projects, deriving downfall of sales by 11%. It is concluded by some that if RERA and GST are carried out in nearby time across the states it might retrieve the trust of buyers inducing better sales than previous six months.
Seeing different permutation that went during demonetization, RERA and now GST regime there has been a rapid downfall in Real Estate as developers have brought down prices by approximately 4%.
As RERA is unbiased towards buyers, developers can’t profit through abrupt efflux in the price in construction; investment will be down in Real Estate. Though we do expect new launches and stable market in 2018 but not before that as a recovery in the real estate sector may take longer.
Note – Please note that the above article is part of our continuous research on the related matters. It is based on our interpretation of related regulations which may differ person to person. Readers are expected to take expert opinion before relying on above.