Every sector has been badly hit by the COVID-19 pandemic. While the real estate sector had already taken a hit since the implementation of the RERA Act, the recent 2020 pandemic has hit the sector hard too.
However, the sales of properties – whether plots or sites, or even buildings – has not slowed down much, the worst-hit part being the development itself. In fact, it has increased, given the increased benefits for buyers. From lowest-ever home loan interest rates to waiving-off (GST) or reduction of taxes (such as personal tax), the benefits are numerous.
Back in 2019, the Government of India approved a plan to set up INR 25,000 crores as alternative investment fund (AIF) for stalled housing projects across India, each project ranging from INR 1 crore to INR 2 crores. This gave hope to the real estate sector to complete the unfinished projects smoothly, the criteria being that these projects are RERA-registered.
The real estate sector is the second-largest employer in India. It is predicted that by 2025, the sector will contribute nearly 13% towards India’s GDP. Fairly enough, the real estate sector in India has newer expectations based on its overall performance in the past year.
India is putting-in genuine efforts to help different sectors get back to their productive-best after the pandemic. In 2020, the country greatly helped real estate India by announcing moratoriums, tax deductions and easing many more regulations. This is due to the fact that the real estate sector in India almost entirely depends on the government’s policies.
Based on the impact faced by the real estate sector prior to, during and post COVID-19, the sector has drawn out certain expectations to improvise business. The growth of real estate sector will also boost the country’s economy due to its contribution as mentioned above.
Basically, the sector hopes for better reforms for developers as well as buyers to bring-in equal harmony and produce better quality and quantity of sales.
Real estate India hopes that the government will entirely waiver-off GST for properties that are under construction, at least for a limited period of time until the sales shoot-up. This is with hopes to order to cut down the construction cost which will be a great relief to developers, given the high costs of the projects and also to limit the impact of financial crunch. Other than this, the sector expects better incentives, subsidies and more to boost developers’ confidence. Spokespersons for the sector have shared their concerns being that the previous reforms announced by the government were still not good enough to curb the sector’s losses.
A major concern for buyers would be tax. Thus real estate expects a well-notable percentage of tax relief for property buyers in order to encourage them to make an investment. As this demand increases, the sector will benefit well, as the sales increase alongside. Another concern is the time taken for manual approvals at every stage of a project. The real estate sector hopes to automate the approval process to cut down on the time taken for the same and quickly complete developments.
With many hopeful relaxations of rules and regulations, it would be the right time to buy plots or sites and invest in land. Mysore real estate is a smart choice of investment, Mysore being a Tier-2 city that is in great demand. In general, real estate in India has a promising future.
GSS Projects real estate consultant is over two decades old and is the first choice of buyers with respect to Mysore real estate. Contact us for a smooth and fulfilling real estate experience. You will assuredly be working with the best!