GST and RERA came in: what next for Realty Sector?

In India, real estate is the second largest employer after agriculture and is slated to grow at 30 per cent over the next decade. India was much in need of a regulatory body which could monitor this sector uniformly. So for this, the Indian Government launched RERA and GST.

RERA or Real Estate Regulatory Act, 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. The Act came into force on 1 May 2017. Very soon GST also kicked in on July 1, replacing the multiple taxes levied by the central and state governments and subsumed of all the indirect taxes, including central excise duty, commercial tax, octroi tax/charges, Value-Added Tax (VAT) and service tax.

RERA along with GST is to bring transparency and better accountability in this sector. However, despite the arrival of the two the real estate sector is yet to get momentum.

Industry experts are of the view that the industry will work properly only when there is an implementation of these new reforms (RERA and GST) are with true spirit and along with a time bound manner.

"Both RERA and GST can be regarded as game -changer for real sector as they will provide a fillip to the sector by streamlining operations and ensuring transparency. However, the government still needs to put in place a single window clearance mechanism which is a long-awaited step for the industry,” said Ravish Kapoor, Director, Elan Group.

Many states are still in the process of RERA implementation. Some have even deviated from main guidelines in their respective notifications, which dilute the essence of central law. More important is one area that needs attention - stamp duty. It will remain to continue into force even after GST came into force. The rates vary from state to state, which is from 5-7%. If this is abolished by the State Government, the final cost of the housing will reduce for sure.

Though RERA and GST have been enacted as the transformative strategies in the real estate sector, the rules and regulations of the agendas are not clear. It may take 2-3 months for the clear understanding of the policies. Thus, there is a requisite on the part of the government to flourish the policies in a more systematic chain for the industry. Once the policies will be enacted in a consistent way, the Real Estate sector will get a positive push,” said Rahul Singla, Director, Mapsko.

“Reforms like GST and RERA are fundamental reforms, which require substantial time for both implementation and results. Both these reforms are in preliminary stages of their implementation and we are yet to witness the real impact of these reforms. However in the short term, market is driven by parameters like interest rates, demand & supply and other economic drivers, all of which are currently in positive direction. We can expect a major upward movement in real estate in next two to three quarters,” said Pankaj Bansal, Director, M3M Group.

Only future will reveal its impact in this sector, but let’s see what Indian Government will offer in the coming time.


AFFORDABLE HOUSES: Growth Drivers of Indian Real Estate Industry

If we talk about affordable houses, it typically denotes the housing needs of the lower or middle income population. The Government of India has taken number of steps to make affordable house available to everyone.

Budget 2017 has proposed infrastructure status for affordable housing, a long-standing demand of developers, and also increased the allocation for the Prime Minister Awas Yojana from Rs 15,000 crore to Rs 23,000 crore, bringing the country closer to realising the Housing for All mission by 2022. Under this one crore houses are to be built by 2019 in rural India for the homeless and those living in ‘kaccha’ houses.

Elan Mercado Sector 80 Gurgaon

The long Delayed SPR finally sets up as reality: a move towards realty

Gurugram’s Southern Peripheral Road (SPR) comes at its final twitch with the removal of the last hurdle, Ambedkar Statue at Badshapur Chowk. The construction of SPR was almost completed in March with only a small stretch left incomplete due to the delay in shifting the statue. On Monday, Huda has removed the statue, which was hindering the completion of the road. The statue was planned to relegate to an adjacent place in April itself but due to some reasons it got delayed. Huda administrator Yashpal Yadav said “With the statue shifted, work on only a small stretch of the road remains. This important infrastructure project will now be completed in no time”. According to the authorities the Chief Minister Manohar Lal Khattar is expected to inaugurate the road.

PPP Model

Modi Government proposes PPP model to boost affordable housing

The union government has proposed a Public- Private Partnership Policy under which affordable housing will be provided land in order to boost housing development. The Ministry of Housing and Urban Poverty Alleviation (HUPA) has formed the model of Public-Private Partnership Policy for affordable housing to induce the developer to explore extra developable area. The policy has been launched to boost Prime Minister Awas Yojana (PMAY), a leader ship  initiative of the union government. So far, only eight PPP projects have been launched on the government land. “Housing for all by 2022” has been one of the chief agendas of the union government, taking under various state governments and financial institutes to focus in this area. The government has also proposed infrastructure status to affordable housing in Budget 2017, providing financial availability at combative terms.

Mumbai Rera

Maharashtra RERA: Deadline for projects' registration not to be extended

Chairman of Maharashtra’s Real Estate Regulatory Authority, Gautam Chatterjee has said that the deadline for registration of projects under the real estate act will not be extended beyond 31st July. 

Speaking to reporters in Mumbai today, Mr. Chatterjee said that the new law will bring in transparency in the system. The Real Estate (Regulation & Development) Act-2016 came into force with effect from 1st of May this year, and Maharashtra was one of the first states to notify its rules and establish the regulatory authority. 

Mr. Chatterjee said that over 300 applications have been registered so far, while nearly 20,000 are expected to register online by end of this month.