With the enactment of the real estate law and implementation of GST (Goods & Services Tax), 2017 proved to be an eventful year for the real estate market in India. Even though home sales declined in major cities like Bengaluru, Chennai, Pune and Hyderabad during the second quarter of 2017, Mumbai’s market recorded improvement in sales. Home sales in the city improved across all price ranges during this period.
According to the real estate experts, investor confidence in 2018 will be on the rise due to policy reforms such as RERA and GST. The market in Mumbai and other major cities will reap the benefits of a reform-driven environment, attracting more investment. If you were looking for a favourable investment scenario for buying a property in Mumbai, then 2018 will be a good year.
Here are some of the key policy initiatives that will make property investment safer for buyers or investors in 2018:
With RERA (Real Estate Regulations & Development Act), 29 regulatory authorities have been set up to safeguard the interest of homebuyers.
Benami Property Act has helped prohibit benami (nameless) transactions, leading to confiscation of such properties.
With the implementation of GST, it has become necessary for real estate builders to pass on the benefit from input tax credit to consumers.
REIT Reforms or Real Estate investment Trusts have been launched to increase liquidity in the real estate sector.
It is being predicted that the outlook for residential segment in Mumbai will be positive this year. There will be more supply coming in the ‘affordable’ segment by the real estate developers in Mumbai. Experts are of view that with the implementation of RERA (Real Estate Regulations & Development Act), the next one and a half year will be the right time for first time buyers to purchase a home in Mumbai.
With Macro Economic indicators showing positive signs of economic revival and with Developers creating product that are more Consumer Centric and acceptable in the market, it seems 2018 is a good time to invest in Real Estate.