Key Reforms to Boost Real Estate in the Year 2018
New Delhi : Blowing away all the negativities that the real estate sector had gathered over the last couple of years due to long extended policy paralysis situation, the year 2018 is expected to see the rise of real estate sector in the country and as the beginning of a new dawn for the industry with the implementation of major policies including enactment of Real Estate Regulations and Development Act (RERA), reaffirms Ms. Ishanee Sharma, Partner, V&K Law & practising lawyer, Delhi High Court.
Definitely RERA acted as a catalyst in institutionalisation of real estate sector with the bigger role in escorting developers to regain the lost trust of the majority of buyers. Apart from bringing more transparency in dealings, RERA also helped in curbing the perennial malpractices done by the fly-by-night operators. All throughout the year 2017, the developers as well remained focussed on delivery of their on-going projects. As a result, the investors’ outlook has also turned positive, though it has not yet reached the level of the year 2007.
Commenting on the situation Ms. Ishanee Sharma, Partner, V&K Law & practising lawyer, Delhi High Court said, "With the implementation of RERA, the much-desired transparency in terms of buyers’ aspirations has already been achieved and hence buyers’ confidence in the market has grown. All these recent policy measures have also given a boost to confidence of foreign investors in the Indian real estate sector."
Amid all these, there still remains an urgent requirement of speedy infrastructure development in the wake of growing real estate demand from all across the country including tier-II and tier-III cities. Stating about the requirement of infrastructure for rapid urbanization, it doesn’t mean only construction of roads and huge bridges, but it actually signifies easy availability of basic amenities and sufficient social infrastructure such as availability of healthcare centers, parks and recreation centers, among others. The government has to implement its planned initiatives quickly to improve the infrastructure in all these cities. It is loud and clear that the future of the real estate sector stands on the edifice of speedy infrastructure growth and it is also the most crucial requirement for fast track urbanization.
Ms. Sharma further adds, "One key positive impact of demonetisation and RERA (Real Estate Regulation Act) has been that speculative investors deserted real estate and end-users/genuine buyers, who were all these years pushed to the sidelines, came out in large numbers. Now, it is the property consumers who are driving the real estate market, especially residential market, aided by the government's pro-industry and pro-consumer initiatives. Other than in terms of the initial confusion-induced decline in sentiment, the trend that is emerging now, points towards a recovery in buying sentiment with serious buyers already returning to primary markets."
For the Indian real estate sector facing rough weather for quite some time, the year 2018 is expected to usher in an era of renewed optimism. Even though the buyers had taken cautious approach towards entering the real estate market till the second quarter of the year 2017, there has been noticeable improvement in the market sentiments at the year-end. It was clearly the outcome of the increased transparency brought in by RERA in terms of buyers expectations. As we move into the year 2018 there’s hope on the horizon and so we believe the real estate buyers, particularly the end-users, will be back to take the plunge and go with the best real estate brands. The despondency has already given way to optimism and so the buyers are here to shed their reluctance to invest in real estate sector.