Even when not an industry, real estate sector in the country has been a overwhelming contributor towards the annual GDP along with being one of the biggest employers. This is the reason why everyone’s eyes are expectant towards the performance of the sector every year. This not only cements the importance of this sector in the national economy but imposes an onus on the sector to outperform itself every year on a year on year basis.
Apart from the passage of GST and RERA, Union Budget 2016-17 saw major reliefs for the affordable and rental housing segments in the country. Even the Reserve Bank Of India (RBI) slashed the Repo Rate by a total of 50 basis points during this calendar year, thereby ushering the banks to reduce its lending rates for the potential buyers and helping the demand to move forward. Work on the infrastructure front saw a major momentum gain as several cities across the country witnessed airport upgradations, metros becoming operational, several expressways and roadways opened for the public and so much more.
In tune with the year ahead, continuous work progress would be required on all fronts and active participation from all stakeholders, be it the banking system or the government, would be a key factor in realising the dreams of millions to own a house of their own. With enough liquidity achieved because of the current demonetisation and sufficient cushion being provided by the RBI on all fronts, lending institutions are expected to slash down lending rates in the near future allowing buyers, most of whom belong to the salaried class, invest in real estate. The government will have to actively look into various aspects on the financial front as well, wherein REITs will have to be made more focussed and operational; Single Window Clearance would be a must to ensure smooth implementation of operational RERA and on top of it all, an Industry Status to go with.
Sharing his views on the expectations of the sector from the upcoming year, Avneesh Sood, Director, Eros Group says, “Looking into the core angles of Indian real estate sector and keeping in mind how this year went by, a lot is expected out of it in the year ahead. Core work on affordable housing has already started in many regions and the impending work on the Smart Cities Mission will finally witness the light of the day. Infrastructure development has been going at good pace with substantial work going on all fronts. Rail and road connectivity is seeing new heights with every passing month. The government has been very proactive towards ensuring ease of doing business in the country and surely with the continuous and unidirectional efforts of all, we would definitely see brighter times for the sector ahead.”