It may be true that ‘when the going gets tough, the tough gets going,’ but this doesn’t hold true for the Indian real estate sector currently. The ongoing NBFC crisis post IL&FS default has made things even more difficult for developers.
The Real-Estate (Regulation and Development) Act, 2016 (RERA) was enacted to ensure transparency, create accountability and ensure that genuine homebuyers are not cheated and left in limbo by unscrupulous developers.
Implementation of GST has brought a radical change in the real estate sector and has helped to bring in a lot of transparency in the sector. Initially, the market witnessed a sluggish trend with implementation of GST, but now it is slowly moving towards recovery.
The Indian real estate industry, particularly the residential sector, was in the past correctly characterised as being unregulated and unorganised with unreasonable project delays and poor quality of construction being definitive aspects.
India Ratings and Research (Ind-Ra) believes the cabinet ordinance to treat home buyers as financial creditors rather than operational creditors under the Insolvency and Bankruptcy Code 2016 (IBC) could be credit negative for the lenders of developers, while it may strengthen real estate buyers’ (end-customers) protection and boost the customer sentiment.
The Confederation of Real Estate Developers' Associations of India (CREDAI) has requested Hardeep Singh Puri, Minister for Housing and Urban Affairs, to intervene in a bid to facilitate the successful implementation of the Real Estate Appellate Tribunal under Section 43 of the Real Estate Regulatory Authority (RERA) Act in the country.
It’s been an action-packed year for the real estate sector. The year 2017, started on a slow note, with the sector still reeling under the shock of demonetisation – a policy measure announced by the government in November 2016, to flush out black money from the economy.
Bengaluru’s real estate market has out-performed all other cities in terms of shedding unsold housing inventory, says the latest report by Anarock Property Consultants. The report, released at Acetch 2018 in Bengaluru recently, confirms that Bengaluru saw a remarkable decline of 25 per cent in the total unsold stock across the top cities.