Real Benefits
Real Estate

Real Benefits

<span style="font-weight: bold;">SANJAY JAIN </span>explains how the government's reforms will improve buyer sentiment, increase sales and propel growth in real estate. <p></p> <p> The past year has been monumental for the Indian real-estate industry. The sector, which was once unorganised, has now emerged as an established and regulated one owing to a series of progressive policy reforms by the government. </p> <p> <span style="font-weight: bold;">Demonetisation</span><br /> In early November last year, India witnessed one of the biggest reforms with demonetisation. This bold move brought about an increase in fund inflows in the banking sector, leading to a reduction in home loan rates, in turn serving as a stabiliser for the real estate sector. This was the first step in the revival of the sector, followed by significant announcements in the Budget 2017-18, RERA and GST.</p> <p> <span style="font-weight: bold;">Union Budget 2017-18</span><br /> While the nation adjusted to demonetisation, the government provided some relief in the Union Budget 2017-18. It granted infrastructure status to the affordable housing sector, clearly showing its intention to make 'Housing for All by 2022' a reality. The status grant comes with a plethora of benefits to developers, such as availability of prime land parcels and access to funds along with faster approvals, incentivising them to develop affordable housing projects. To further improve the market and buyer sentiment, the government implemented RERA and GST, two policy changes that will transform the modus operandi of the sector. </p> <p> <span style="font-weight: bold;">RERA</span><br /> A landmark development that changed the dynamics of the realty sector, RERA was implemented in May 2017. It has been widely applauded by developers and buyers alike. The introduction of RERA is a positive initiative that will benefit the whole industry. It will bring in much needed transparency in the sector as the entire legal framework and financial and commercial details have to be shared with buyers, who will have the right to inspect and check such information. The developer becomes accountable for quality of work and timely delivery of the property along with fair and reasonable commercial dealings with the buyer. Initially, there was a lot of ambiguity after the announcement but, eventually, it has proven to be advantageous for the industry. It is important that organisations are structured in planning as well as execution. The implementation of RERA has protected consumer interest and ensured speedy redress of disputes, which will help gain confidence among buyers.</p> <p> <span style="font-weight: bold;">GST</span><br /> Further, GST has also brought in the required transparency and accountability that the sector needed, and established a smooth mechanism in processes going forward. The implementation of GST has helped subsume multiple indirect taxes that buyers pay to developers. GST is expected to boost GDP growth by about 2 per cent, and the real-estate sector accounts for an approx 5-6 per cent contribution. GST has simplified tax compliance and minimised scope for double taxation. </p> <p> <span style="font-weight: bold;">Digitisation</span><br /> The government is laying emphasis on Digital India by encouraging individuals to use online mediums to make transactions. This will ease the burden for financial institutions. Siddha Group has been active in the digital space for the past few years. In coming years, the online medium will become the most important one for real estate sales. We have been the first real-estate company in Eastern India to launch our own app. The response was phenomenal, and we are striving to provide online offers to encourage buyers to make online payments.</p> <p>All considered, the implementation of such reforms by the government are sure to improve buyer sentiment and increase sales in the near future. They have strengthened the association between a buyer and a developer immensely. The real-estate market has also benefitted from the cumulative effect of these reforms, which will help propel the growth of the sector going forward. It is safe to say there is a bright future in store for the real estate sector. </p> <p> <span style="font-weight: bold;">About the author: <br /> Sanjay Jain, Group Managing Director, Siddha Group</span>, has over two-and-a-half decades of experience in the real-estate industry. A creator of many firsts, he oversees the entire functioning of the company's real-estate development. </p>

<span style="font-weight: bold;">SANJAY JAIN </span>explains how the government's reforms will improve buyer sentiment, increase sales and propel growth in real estate. <p></p> <p> The past year has been monumental for the Indian real-estate industry. The sector, which was once unorganised, has now emerged as an established and regulated one owing to a series of progressive policy reforms by the government. </p> <p> <span style="font-weight: bold;">Demonetisation</span><br /> In early November last year, India witnessed one of the biggest reforms with demonetisation. This bold move brought about an increase in fund inflows in the banking sector, leading to a reduction in home loan rates, in turn serving as a stabiliser for the real estate sector. This was the first step in the revival of the sector, followed by significant announcements in the Budget 2017-18, RERA and GST.</p> <p> <span style="font-weight: bold;">Union Budget 2017-18</span><br /> While the nation adjusted to demonetisation, the government provided some relief in the Union Budget 2017-18. It granted infrastructure status to the affordable housing sector, clearly showing its intention to make 'Housing for All by 2022' a reality. The status grant comes with a plethora of benefits to developers, such as availability of prime land parcels and access to funds along with faster approvals, incentivising them to develop affordable housing projects. To further improve the market and buyer sentiment, the government implemented RERA and GST, two policy changes that will transform the modus operandi of the sector. </p> <p> <span style="font-weight: bold;">RERA</span><br /> A landmark development that changed the dynamics of the realty sector, RERA was implemented in May 2017. It has been widely applauded by developers and buyers alike. The introduction of RERA is a positive initiative that will benefit the whole industry. It will bring in much needed transparency in the sector as the entire legal framework and financial and commercial details have to be shared with buyers, who will have the right to inspect and check such information. The developer becomes accountable for quality of work and timely delivery of the property along with fair and reasonable commercial dealings with the buyer. Initially, there was a lot of ambiguity after the announcement but, eventually, it has proven to be advantageous for the industry. It is important that organisations are structured in planning as well as execution. The implementation of RERA has protected consumer interest and ensured speedy redress of disputes, which will help gain confidence among buyers.</p> <p> <span style="font-weight: bold;">GST</span><br /> Further, GST has also brought in the required transparency and accountability that the sector needed, and established a smooth mechanism in processes going forward. The implementation of GST has helped subsume multiple indirect taxes that buyers pay to developers. GST is expected to boost GDP growth by about 2 per cent, and the real-estate sector accounts for an approx 5-6 per cent contribution. GST has simplified tax compliance and minimised scope for double taxation. </p> <p> <span style="font-weight: bold;">Digitisation</span><br /> The government is laying emphasis on Digital India by encouraging individuals to use online mediums to make transactions. This will ease the burden for financial institutions. Siddha Group has been active in the digital space for the past few years. In coming years, the online medium will become the most important one for real estate sales. We have been the first real-estate company in Eastern India to launch our own app. The response was phenomenal, and we are striving to provide online offers to encourage buyers to make online payments.</p> <p>All considered, the implementation of such reforms by the government are sure to improve buyer sentiment and increase sales in the near future. They have strengthened the association between a buyer and a developer immensely. The real-estate market has also benefitted from the cumulative effect of these reforms, which will help propel the growth of the sector going forward. It is safe to say there is a bright future in store for the real estate sector. </p> <p> <span style="font-weight: bold;">About the author: <br /> Sanjay Jain, Group Managing Director, Siddha Group</span>, has over two-and-a-half decades of experience in the real-estate industry. A creator of many firsts, he oversees the entire functioning of the company's real-estate development. </p>

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