Gurugram: The Reserve Bank of India (RBI) has recently reduced repo rate by 0.25 percent to 6.25 and reserve repo rate at 6.00 per cent. It is the rate at which the central bank lends short term money to banks. A cut in the rate will give a fillip to the economy:
"The real estate sector is expected to witness a boost in budget 2019. Keeping the trend of promoting affordable housing alive this year, the major demand in budget is extension of income tax exemption applicable to current affordable housing units. Another prominent expectation from the government will be single window clearance system. Reduction of GST on under construction projects upto 5% from 12% will be a significant demand in the upcoming budget."
Ashish Sarin, Director and CEO, AlphaCorp
Ssumit Berry, Managing Director, BDI Group
India was ranked 36th in the index during the last bi-annual survey conducted in 2016 and 40th in 2014.
New Delhi: India has improved its ranking by one notch to 35th in the global real estate transparency index, driven by policy reforms and liberalisation of FDI rules in property as well as retail sectors, realty consultant JLL said.
India was ranked 36th in the index during the last bi-annual survey conducted in 2016 and 40th in 2014. The country's real estate market is currently placed in the 'semi-transparent' zone.The ranking is expected to improve further in the next survey in 2020, on the back of several government initiatives such as Real Estate (Regulation and Development) Act (RERA), GST and Benami Transactions Act, JLL India's CEO and Country Head Ramesh Nair said. According to the survey, UK is at the top position followed by Australia and the US. France, Canada, Netherlands, New Zealand, Germany, Ireland and Sweden are in top 10 in the list of 100 countries.
Photo Courtesy: Internet
Fuelled by good connectivity and robust development, the area is a boon to the real estate sector
The rapid urbanisation in National Capital Region (NCR) is increasing day by day. This is amplifying the traffic crisis in the region. In order to overcome the scenario, the Government has established new sectors along the Gurgaon’s NH-8. These sectors are attracting developers as well as buyers from every part of the country.
The sectors along NH-8 continue to offer their own location advantages. “These areas are attracting a good number of realty players and thus increasing the competition in this sector. As a result, the buyers are getting the best,” Rajmal Shekhar, a realtor in the region, said.
The area remains the prime expressway that continues to fuel the development of residential as well as the commercial sector along the area. The NH-8 connects the NCR with Jaipur and other parts of Rajasthan.
Sectors along NH-8 are also connected to the IGI airport, which is on a straight drive from there. Both expressways – the Southern Peripheral Road and Dwarka Expressway – touch NH-8 at Kherki Daula intersection. Arterial and sector roads along the highway are connected through various exits and entry points.
Sectors like 30, 31, 33, 34, 37, 37A, 38, 48, 77, 78, 81, and 82 are some of the key residential sectors along NH-8. Many developers like Ashiana, Emaar India, Umang Realtech, DLF Ltd, Vatika Group, Universal Buildwell, and Central Park have residential projects in these sectors.
These sectors offer 2 to 5BHK units whose size varies from 450 sqft to 2,500 sqft and the cost of these units depends on their locations. For example, the cost of 2BHK costs Rs 1 crore in Sector 33.
Owing to price stability and demand in the region, sectors along NH-8 also have strong rentals. Most of the professionals working in companies in and around Gurgaon prefer these sectors. Thus, rental values have remained on the higher side along NH-8. A 2BHK unit at a prime location commands Rs 15,000-35,000 per month in rent.
“The accelerated urbanisation and rampant migration of working population in Gurgaon has led to an increase in demand for the residential sector in its adjoining areas. Buyers and investors are showing more interest in this area because of the easy accessibility, connectivity to various places and major infrastructural development. Additionally, properties have offered good returns on investment over the past few years. The demand for ready-to-move-in-apartment has also escalated in recent time, as because these are GST-free and best option in Gurgaon’s NH,” said Rahul Singla, Director, Mapsko Group.
Existing physical and social infrastructure along NH-8 coupled up with the ongoing and proposed infrastructure project is increasing the buyer’s interest towards it. Thus, the demand for properties along these sectors is touted to increase manifold in future and the area is a boon to the real estate sector.
A cheerful moment could be there for real estate sector after a hope of more organized players will take the lead in the growth that leads more transparency and ease of doing business due to RERA and GST.
Accepting the facts, one of the developers, Harinder Dhillon , Vice President Sales of DLF Ltd. appreciated RERA and GST for boosting buyers confidence, “The real estate sector is indeed back to its recovery path. The markets of corrections in some popular housing sectors of Gurgaon and Noida and the sales value have increased in these markets in the wake of these price corrections.”
“Also legislation like GST and RERA has boosted the buyers’ confidence. With more clarity coming in on GST, sales are expected to improve further in the months to come.”
The developers also said that increase in confidence of buyers’ has backed the demolished market of realty sector.
It is noticed that the property sales are believed to be boosting up due to buyers are getting better deals in the market. "The implementation of various reforms has boosted buyer confidence. Also, in the current market situation homebuyers are in a better position to negotiate and grab better deals, leading to improvement in sales," Ravish Kapoor, director of Elan Group, said.
"During the past one year or so real estate has seen reforms like demonetization, GST and RERA. The realty market however,absorbed all reforms, which gavemuch confidence to home buyers. Now the sector is showing signs of recovery with sales improving in the wake of Correction in property prices. Both mid- and affordable housing segments are registering improvements in sales. Hopefully, it is only a matter of a few quarters for the market to be back on track," Gaurav Mittal, MD of CHD Developers, said.
Experts in the industry say that residential property market is gradually getting back to track but a lot of suppressed sentiment dynamics are still at play and the overly adventurous pricing developers indulged in over the past few years have had a part in this.
Anuj Puri, chairman of ANAROCK Property Consultants, also stood beside demonetisation, saying that it has been one of the prime reasons for the upliftment of the market, "If all the other fundamentals for a purchase decision such as good location, the credibility of the builder, available amenities, overall rational pricing, and RERA registration buyers feel confident to respond to the added incentives of discounts. Also, what is currently selling is affordable and mid-income housing in the primary sales segment Premium housing, as well as the resale market, took a big hit after demonetisation because they were traditionally targets for unaccounted funds. While the overall market is recovering, premium housing is taking longer to recuperate.”