The reinstated Narendra Modi Government is braced up to take India ahead in every possible manner and the real estate market is one of the biggest sectors to work on. This yet to be declared industry witnessed a massive slowdown during the demonetization time but and the introduction of various reforms worked as a light in the tunnel that paves way for a bright future of the Indian property market.
All these factors raised a ray of hope for both the developers and homebuyers. We here list expectations of the Indian real estate market from the Narendra Modi-led Union Government in the budget 2019-20.
The Real Estate Regulatory Authority Act 2016 will complete three years of its implementation soon and thus the aspiration of the real estate developers and homebuyers are also touching the sky. The sector expects that the Government will work towards resolving issues such as infrastructural investment, land acquisition and fast operations of the RERA authorities across the states.
Another important issue that the Indian real estate is expecting to be addressed is the single window clearance system. A majority of projects get delayed due to the long and tedious procedure to get sanctions and quick functioning of the same is expected form the Modi Government in its second term.
The RERA authorities are formed in almost every Indian state and UT but the formation of a RERA tribunal is equally important to conduct regular hearing of the complaints. Thus, the Government must focus on setting up tribunals and appellate in the minimum time possible to ensure fast proceeding in the court to benefit the homebuyers.
The Embassy group in collaboration with Blackstone introduced the maiden Real Estate Investment Trust i.e. REIT in India and this concept is bridging the path to make investments without hesitation in the Indian property market. Thus, the re-elected Modi Government is required to work on the recommendations on REITs as it will directly boost the commercial sector in a positive manner.
Foreign Direct Investment
A report shows that the total institutional investment stands around USD 30 million between 2009 to 2018 and the number has doubled in the past some time and the Indian real estate sector expects that the Government will focus in this arena also in the budget for the year 2019-20.
Work on Reforms
The Union Government must work on the reform like GST that was introduced by the same Government in its first tenure. The freshly introduced cut in the Goods and Services rates on both ready-to-move-in and under-construction properties needs from refining to make it workable and the Direct Input Tax Credit is also a task to work on.
The Government has sanctioned more than 84 lakhs homes under its flagship program of Pradhan Mantri Aawas Yojna launched in 2015 with the aim to offer Housing for All by 2022. The Modi Government is hopeful to achieve its target way before the deadline and thus the real estate sector expect something for them also in the same as developers are now focusing to construct affordable homes apart from the regular projects.
The Indian real estate sector is expecting some incentives especially in the Tier II cities that will be developed as smart cities. This is because increase in the number of dwelling units is simply not possible without the support of the developers anywhere.