The Indian real estate sector has grown at a very brisk pace in recent years. However, being mostly unregulated, delays in project completion, flats handover to the consumer were common across India. To mitigate the buyers’ woes and regulate the sector, the central government unveiled some major reform measures in 2017.
The government implemented the Real Estate Regulatory Act (RERA) and brought the sector under the purview of the Goods and Services Tax (GST).
The RERA aims to protect consumer interest by creating an online system for information sharing so that there is mutual trust between the developer and the buyers, and to make sure that projects are implemented in time. This measure has forced developers to focus more on completing projects on hand rather than on launching new projects.
Another important measure taken up by the government in the year 2017 was the launch of Affordable Housing Schemes. Under this scheme, one crore houses are to be built in rural areas by 2019. This will not only ensure houses for the poor but will also give an impetus to scores of industries supplying inputs to the housing sector.
Another major development which took place in the last year was the announcement of cities under Smart City mission. A total of 99 smart cities of the planned 100 smart cities were announced by the union government.
Real Estate and Budget 2017-18:
The infrastructure status will help the government to achieve its Housing for All mission by 2020. It will also help attract more investments and make cheaper funding available to builders. The budget provides for refinance of individual loans totalling Rs 20,000 crore by the National Housing Bank in 2017-18. The budget provided Rs 23,000 crore for the Pradhan Mantri Awas Yojna (PMAY), under which one crore houses will be built by 2019.