View Point: Rattan Hawelia, Chairman, Hawelia Group feels the year 2018 could be a struggling year for the developers due to their own fiscal mismanagement. He neverhteless feels it would be a turnaround year with the intent to streamline and professioanlise the business. Â
Implication of Real Estate (Regulations & Development) Act, 2016 on ground in the entire Nation has been major impacting factor to the Indian real estate sector therebyÂ increasing transparency with improvements in structural reforms & regulatory framework.
The more liberalized FDI regime now further attracting global capital flow to Indian real estate sector. The Goods and Services Tax (GST) system will also have a major impact especially in sell to build model in Real Estate.Â And the Benami Property Act will surely curb the parking of black money in real estate.
Affordable housing getting the Infrastructure status was also one of the much needed changes and will result in increased participation from private players by paving ways for cheaper construction finance and significantly boost the governmentâs target of âHousing for Allâ.
Year 2017 was the year for redefining the Indian real estate as the government has introduced many reforms for regulation of this sector.
The year 2017 had begun with the after effects of demonetization because of which the sector also started in a struggling mode. Implication of RERA & then GST system also affected the sector as compliance to all the rules was a challenge to most of the developers but certainly many of them had met the compliances who were all prepared on time for the necessary change.Â
Many of the developers had undergone the tough period in 2017 as is cleared from the news highlights of the year, particularly due to over scaling their scope of work without proper planning.Â
Today, because of the government initiatives the real estate buyers had better knowledge and are well informed of their rights. They have better medium to choose the right property fulfilling their requirements as all the private developers are on a single platform of their offerings.
Developer fraternity are streamlining their professional intent and adopting transparent & clear mode of dealing with their customers. They had understood that instead of being only the product & promise based industry; Real estate is more about services and addressing the concerns and issues of consumer on realistic ground. Today one should prioritize the customer needs and focus on their actual problems.
2018 would surely be a struggling year for the private developers due to poor fiscal management in 2017. This new year will be totally a turnaround year for the entire real estate fraternity of the Nation and the actual state of every developer will come out; thereby freeing the sector from many fly-by-night operators.
With the beginning of 2018 the developer should focus on their ongoing projects and should streamline their financial planning so that the delayed projects could come on track to deliver their promises to the end user.
The residential property market is all set to dominate by the end-users. Corporate developers will acquire more projects and new corporate houses are gearing up for their debut as well in real estate development.
All policy reforms and positive moves will significantly impact the revival & growth of the market. Sincere real estate players could gain the momentum and the sector will get a boost and confidence of the home buyer. This will surely help genuine developers to come in front and take the real estate market way forward.
The demand of affordable housing is more than the supply and affordable housing will definitely going to play the major key role in 2018. We hope that the coming year will be the view changer year of real estate industry.