Many top realty players are optimistic that the recent reform measures announced by the government will give a boost to the sector that has seen one of its worst periods in 2017.
They say that bold reform initiatives such as Goods and Services Tax, the Real Estate (Regulation and Development) Act, 2016 (RERA) and the Union Budget putting development of affordable housing on priority have boosted the optimism among developers and home buyers.
“While demonetisation translated into a reservation among prospective buyers to part with their cash reserves, RERA and GST had affected the supply side,” The Hindu quoted Anand Piramal, Executive Director, Piramal Group and Founder, Piramal Realty as saying.
“However, these reforms have had a positive impact as well, the fruits of which will ripen in the coming year,” he said
Anuj Puri, Chairman, Anarock Property Consultants, said:. “Real estate sector got more than its usual share of the limelight. A series of reforms and structural changes tore into the very heart of the industry, effecting a surgical strike at market capacity, unaccounted funds transactions and customer victimisation.”
He said in 2017, new housing project launches were severely impacted by the triple tsunami of demonetisation, RERA and GST. As per Anarock research, only 94,000 units were added in top 7 cities between Q1 and Q3 2017, which is a drop of more than 50 per cent from the same period in 2016.
Gautam Chatterjee, Chairman, Maharashtra Real Estate Regulatory Authority, said, “A big brother (regulator) watching over is giving a lot of comfort to financiers, consumers and developers. As regulator, our immediate priority is to ensure that delayed projects are executed on time.”
Ashok Mohanani, Chairman, Ekta World and V-P, NAREDCO West, said, “Reform has boosted consumers’ confidence and has bought transparency in the industry.”
Ashwini Kumar Hooda, DMD, Indiabulls Housing Finance Ltd, said: “2018 will see a huge growth in home purchase transactions in the Rs 25-50 lakh bracket, spurred by the reforms introduced in 2017 and its varied benefits being passed on to the middle income categories.”