It is the first month of 2018 and everyone is gearing up for the year ahead of us. 2017 was a tumultuous year for real estate because three major economic events took place: the after-effects of demonetization, the implementation of GST, and the introduction of RERA (Real Estate Regulatory Act). In the first half of 2017, the sector was still grappling with the effects of demonetization while the impact of GST bill on real estate was multi-fold. The present government has stressed on the importance they place on real estate and with campaigns such as the Pradhan Mantri Awas Yojana, there may be more changes implemented to improve the functioning of this field.
2018 is expected to be a year of consolidation because the policies of 2017 will show their impact fully this year. For most parties involved, there is an increased faith in the sector due to RERA. Most people do believe that it will bring in the much-needed transparency that it has been promising. As in every situation, there are some sceptics who believe that this will only add another layer of administration that will hamper the sector. However, the impact of RERA has been positive till now and it is hoped that this increase in faith will also bring in investments.
Since RERA has put in strict rules for completing old projects before starting new ones, builders will be focusing on finishing off the projects they had started. 2018 will now see a surge in new launches as no builder will want to violate the stipulations of RERA. Those who had been carrying on work slowly will be rushing this year. Developers should also focus on affordable housing this year because of the push by the government regarding such projects. The change in their definition means that it will incentivize developers to offload their inventory.
Due to the increased confidence of buyers in dealings of the sector, sales are likely to pick up in 2018. Overall, this should be a good year for real estate and moving forward, it is expected that this year will be crucial to stabilizing the long-term health of real estate sector in India.
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