The real estate fraternity is positive about the year ahead as some policy changes are expected to bring back the lost sheen, after the slowdown. This was marked by the recent surprise cut in repo rate by RBI which delighted realty experts, leading to high spirits. Here are few other changes which can further bring cheer to the sector.
Reduction in interest rates - As repo rate reduction has brought cheer, banks and housing finance companies are also considering cutting home loan interest rates. This would not only encourage home buying but will also clear inventories which are piling up in big cities.
Real Estate Regulatory Bill - Pending from a long time, the Real Estate Regulatory Bill, if passed, will bring relief to all stakeholders of the sector. “The long-pending Real Estate Regulatory Bill is expected to bring transparency. It will provide relief to buyers and investors as it will ensure buyers get their properties as per promised specifications,” says Anuj Puri, chairman & country head, JLL India.
100 Smart Cities – The ‘Smart City’ concept is one of the most talked about term currently. Allocation of Rs 7,000 crore in the Union Budget 2014 made the real estate sector go ‘gaga’ about the anticipated development. As more clarity over the subject is expected in the coming month, it can be one of the game changers for the real estate sector.
MISIDICI - ‘Make India Skill India Digital India Clean India’ is one of the visions which the government is focusing on. Creation of manufacturing hubs to generate jobs, digitisation of land records, single window clearance for speeding up processes and clean India for developing a pollution free environment will not just improve transactions in the market but will create opportunities for economic growth as well.
REITs - As SEBI announced regulations for Real Estate Investment Trust for the commercial sector, the market is expecting the same for residential also with easier exit routes. Interestingly, this will also bring NRI money to invest in the sector hence, giving more funding channels for a developer to source funds and complete projects on time.
With so many policy reforms anticipated by industry experts, the onus is on the government on what they will deliver and what will still be in the waiting list.