In the last decade, one key aspect where the growth had noticed the slow pace in India is real estate. To tackle with the situation and provide better opportunities, people elected the new Government. This Government has promised that it will provide better infrastructure to real estate projects in India in a managed way. To fulfill the promise of “Housing for all”, the Government has launched many policies in real estate to give a push and gain faith of both investors and buyers. Some well known policies are Real Estate Investment Trusts (REITs), Real Estate Regulation Act (RERA) and relaxation in FDI rules, AMRUT (Atal Mission for Rejuvenation and Urban Transformation), path breaking GSTand development of Smart Cities. Theoutcome of these policies will lead to provide a managed and mature hierarchy balance to real estate.
With RERA, people can easily locate genuine players of property. Only registered projects are being advertised today. This decision will help in fair and valid,transparent transactions. To support RERA, the Government also deployed GST. The GST, operational from July 1, aims to dismantle federal tax barriers in order to create a single, unified market with tax transparency and predictability, promoting ease of doing business and improving supply chain efficiency. These will help the government to complete its Housingfor all Mission, which aims to complete by 2022. Our nation currently requires around 20 million urban homes, excluding low cost and EWS housing.
To renew urbanpolicies, the government allotted Rs. 77,000 crore forARUT mission (to provide water supply, sewerage, urban transport)and Rs. 1 lakh crore forSmart Cities. The government has also increased the housing budget from Rs. 15,000 crore to 23,000 croreunderPradhan Mantri Awas Yojna, to boost construction in rural areas with a target of 10 million homes by 2017-18. To control the synthetic property value, reforms like Benami Property Act, Demonetization and Lower Interest Ratehelped a lot to buy affordable homes in Gurgaon. Infrastructure funding could be a game change for any sector and FDI investment helped the recovery of commercial investment in real estate for the establishment of various industries.
As per BSE, by 2022 India will be the 4th largest economy and ground success of real estate reforms can help to improve current position of 130th in World Bank’s 2017 Rankings.