A revised taxation policy will bring a healthy and sustainable growth

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[/vc_column_text][vc_column_text]The Indian Government should improve the economy which will positively impact real estate sector, says Yogesh Joshi, Co-founded Member of CREDAI MCHI RAGIAD.[/vc_column_text][vc_column_text]How do you assess the current scenario of realty sector in India? What are the demand-supply in terms of residential / commercial and / affordable housing?

The silver lining in the year of 2019 for residential property market witnessed a surge in demand for affordable homes priced up to 45 lakh, which were driven by incentives like lower goods and services tax (GST) of one per cent.  The affordable residential properties are more in demand and even office spaces, commercial properties have also seen rise in the sales. We predict that affordable housing will be in trend for another five years.      [/vc_column_text][vc_column_text]So far what has been the impact of RERA and GST on the realty segment?

RERA has smoothened the process for homebuyers as well as for developers.  It has brought in more transparency as well as standardization in real estate deals. Hence, it has been successful in creating trust in the minds of the homebuyers for the transactions. In case of GST, if we look at the percentage, it has come down and Government is charging on 1% for affordable housing units and 5% on other the real estate deals. Ready stocks are not chargeable hence even they have become a preferred choice for homebuyers. For affordable housing, the GST is only 1% which is boon for homebuyers and developers.       [/vc_column_text][vc_column_text]How do you rate the success of this especially on the implementation part and addressing the projects delays, a bane of the realty segment?

In Maharashtra, the RERA has been implemented very well as compared to the other states. Even though in initial stage, it was difficult to implement but after some modifications, MahaRERA is a boon for both homebuyers and developers.[/vc_column_text][vc_column_text]How supportive are the recent policy reforms and what other policy reforms you expect to propel a healthy and sustainable growth in the realty sector?

The steps taken from Government are helpful but we need more such steps to get the sector back on track. The 25,000 Crore AIF will help the stalled projects for their completion and people who have invested in such projects can finally sit back and relax as the project will pick up pace and will soon be completed.

Further, the Government needs to revise the taxation policies in order to favor the demand side. Focusing more consumer demand is important since the confidence of homebuyers in the sector needs a boost. A revised taxation policy will definitely bring a healthy and sustainable growth in the real estate sector.          [/vc_column_text][vc_column_text]Will the lately announced projects and expected ones, trigger the growth?

Finance Minister NirmalSitharaman has unveiled a 102 lakh crore national infrastructure pipeline, in accordance with the Modi government's vision to make India a $5 trillion economy by 2024-25. In this, it includes various projects like irrigation and rural infrastructure, Road projects, Port projects, NIP projects and many others. This will result in creation of commercial hubs in various areas of the country and will boost economy through job creation.[/vc_column_text][vc_column_text]Could you brief us on the trends in the realty sector?

Commercial properties were in trend in 2019 and growth of the same is expected to rise in the coming years as well. In the coming five years, affordable housing will be in trend when it comes to real estate sector. Affordable housing units are expected to surpass the predicted numbers. For that, homebuyer confidence piggybacking on economy reviving measures taken by the Central Government will be the key driver. The Indian Government should improve the economy which will positively impact real estate sector. RBI repo rate cut is also a good tool to reduce the cash crunch of the economy. Even commercial lease rentals are predicted to be northbound on the back of robust demand and falling vacancy levels.[/vc_column_text][vc_column_text]Are there specific reasons that certain regions have registered healthy growth?

An area witness growth when there is infrastructural development is taking place. In Mumbai, Wadala has registered interest of many homebuyers as due to its proximity to the eastern freeway, eastern express highway, the monorail, and the upcoming metro-4 corridor. Other than that, in Raigad part of MMR, regions like Panvel, Neral-Karjat are experiencing good growth. Many projects like Panvel airport and Panel Terminus project has lined which will increase the connectivity of the area. Even Neral-Karjat area has many infrastructural projects lined up which will result in increased tourism, education and job opportunities. Connectivity and affordability as well as outstanding infrastructural development of Karjat and Neral region have consistently been the major factors for homebuyers to buy a home in that region.[/vc_column_text][vc_column_text]What is the outlook in 2020, and what should be the road map in couple of years down the line?

In the coming year 2020, we expect a rise in the interest towards both residential and commercial properties. Although commercial properties have witnessed strong absorption over the last two years, revival in residential is just starting. Even fast-growing MMR like Neral and Karjat are too on homebuyer's cards and we expect more than 5000 units to be sold in the span of next 2 years in this region.  Government is planning on building various growth centers and in Maharashtra, Raigad unit is predicted to grow considerably. More and more infrastructural projects have been planned in the Raigad part of MMR like trans-habor project which will improve the connectivity of the region. Unit sales have doubled in the last 3 years of these suburban areas and this growth will continue as more quality projects begin works. More provisions from the Government will surely
help the sector.[/vc_column_text][/vc_column][/vc_row]

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