New Commercial Projects in Ghaziabad | Shopping malls in Vaishali

CUSTOMER-DRIVEN MARKET GETTING MUCH-NEEDED RECOGNITION

When the market is healthy enough, the real estate segment contributes a considerable fraction to
the nation’s GDP. The real estate undeniably has economic and productive effects. Due to the
expanding population, there is a housing shortage close to 1.9 crore units in India. There has been a
slower pace in the growth of property as a result of disorganized norms and procedures. The
economically weaker sections and lower income groups have suffered from the housing shortage
due to the high priced housing projects.

The lack of housing for the neglected section of population brought the plan for ‘Affordable Housing’
into the picture. ‘PradhanMantri Awas Yojna’, a policy with a motive to provide affordable housing to
the urban poor and lower income groups got introduced in June 2015 by the Prime Minister
Narendra Modi. The target of this policy is to provide housing to all by the end of 2022. The plan to
execute affordable housing projects all over the nation is being supported by the concerned
segments. Various developers, financial institutions, and micro-lenders have proposed new policies
to execute this plan within the framed deadline. Also, affordable housing has become a new interest
for the developers as they know it's attracting more homebuyers. Due to the governmental
initiatives, the concept of affordable housing has become an admirable concept. The concept is still
growing; the goal to provide homes to all still prevails. The push from the government is encouraging
the private sector participation in this concept.

Recently, the reports by the credit information company confirmed that there is a vigorous growth in
the compound annual growth rate for affordable housing home loans in the last five years. The
favourable outcome is that the buyers going through disorderly home loan procedures will now have
the liberty to attain accomplishment. Also, due to the advent of new policy enactments, there are a
number of hopes in a straight row aligned for the investors.

“As our projects are already inclined towards the affordable aspect, we have launched 9600
segments in Gurugram in the past two years and have planned to come up with 1,00,000 more units
in favour of affordable housing policies. It would be an ease-up for the first time home buyers as they
would be getting ample opportunities to select the desired space for living. We wish to contribute
more to the enactment of this policy so that the motive of providing own houses to all gets
accomplished. With quick execution and policy change, the sector will give rise to new parameters
and housing styles. This will also lead the financial institutions to work on lower thresholds which will
make new inroads for the home-buyers. The increase in demand for affordable projects is seen on
the real estate portals clearly by the experts. It’s a positive sign for us as we have been focusing on
a similar concept since the beginning” says Pradeep Aggarwal, Chairman, National Council on
Affordable Housing, ASSOCHAM who is also the Co-founder & Chairman of Signature Global.

GST AND RERA HAVE BEEN A GAME CHANGER FOR REAL ESTATE

The real estate sector with the roll-out of game-changing policies such as GST and RERA has emerged  out as a  strong  market. Demonetization’s impact started to taper off slightly, while real estate investment trusts (REITs) did not take off this year as expected. Affordable housing came out of the shadows and affordably-priced units have been selling like hot cakes in most cities. India’s Tier 1 cities are expected to move up from their current 36th rank in JLL’s 2018 Global Real Estate Transparency Index (GRETI) on the back of continued improvements in structural reforms, implementation of RERA and GST aimed at making India a modern economy. The GST regime has shown up as a transforming tool for the real estate market.  The real estate sector has experienced a tough time in the past years consistently.  The GST has eliminated the complicated multiple taxation system and has brought simplified taxation process into the picture. Both the buyers and the interested buyers are taking this enactment as a good news.  Sources have suggested that  National Real Estate Development Council (NAREDCO) believes that the 12% GST on the projects undergoing construction will boost the sector.

“The GST is definitely one of the biggest reforms which have made the taxation process simpler and transparent for all. There would be one simplified tax instead of the number of taxations. The tax on tax element has been removed from the picture which is the  biggest ease up for all of us. The icing on the cake is that the GST council is keeping the affordable housing plan in mind so that there are no complications seen while executing the low-cost housing projects.  There are developers and other private body members who have time and again requested the council to reduce land prices and work upon making the residential property easily accessible for the lower margin groups. The lack of transparency in the prior taxation system was amid things that kept the interested buyers in a dubious state.  After the enactment of both GST and RERA, the buyers won’t have to ponder much while going for the desired investment  of land or property. The RERA is bringing in the transparency in the real estate sector which was much needed. Being a developer, it’s important for us to have credibility and accountability amid the investors and such law enactments help us do exactly the same” says Pradeep Aggarwal, Chairman, Signature Global.

Its clear that the GST council has kept the affordable housing policing in mind so the new taxation regime would be beneficial to all. The prior multiple taxation process was complicated for both the buyers and us. Moreover, the lack of transparency related to the tax charges used to keep most of the investors unresolved. Now, after the enactment of GST, the investors and buyers don’t have to knit their brows while purchasing any land or property. It’s indeed a positive change as both the newly introduced enactments; RERA & GST are working in the same direction by assuring transparency and credibility in the real estate sector.