The coming New Year, 2017 is going to be very fruitful for the real estate industry. With demonetization and the implementation of real estate bill, the industry is bound to witness the huge amount of transparency and work efficiency. Such positive impacts have developed trust in the real buyers and increased the number of buyers which will benefit the developers. With the coming of 2017, it is expected that the real estate industry will come back to track again. Moreover, the gift of easy home loans is going to provide help real estate in getting a better and speedily growth. Likewise, housing for all, smart city and GST are some of the important factors which will provide the sector to gain strength. Due to such reasons, where the home buyers are excited, the developers are also planning to provide possessions for the old projects and start with new ones.
In real estate, there has always been a cycle of speedily and low growth. With the past few years where this industry was witnessing a slightly bit low growth, will now experience high growth in the New Year. From government to the developers, everyone has taken steps to improve the conditions of the industry. With the passing of the real estate bill, the buyers have got more powers but on the same side have put a pressure on the developers for delivering the projects on time.
The positive impact of demonetization on real estate:
It is being expected that the impact of demonetization on this industry is going to be positive. The reason is that this industry has a huge amount of black money. With this current rule of the government, black money is expected to wipe out completely from this sector. Further, this will benefit in buying the house with reputed developers. While purchasing the house, transparency will be more and the investor’s money will remain safe. Since this sector is much unorganized but with time will help in getting it organized.
FDI will boost the sector:
Till now, developers used to find it difficult in getting funds for their project. But the coming of real estate bill and demonetization, transparency will increase in the sector. This transparency will increase investment. Moreover, the government has already eased the FDI rules and now the time has come where this industry will gain more benefit from it. This will help the developers in completing the project on time as they will not face any kind of funds shortage anymore.
Easy home loans and income tax rebate:
Demonetization has increased the liquidity in the bank. Therefore, in the coming months, the bank will gift everyone with easy home loans. With the controlling of inflation rate for retail and wholesale, it is being expected that RBI will decades at least 50 basic points in the coming year. This will help in lowering down the home loan rates and will strengthen the sector. Also, the limit for income tax rebate is also expected to be extended.
GST and relaxation in affordable houses:
Next year, it is being expected that GST will come into being which will have less impact on the taxes in this sector and will benefit both, the developers and the consumers. Relaxation in taxes by government will help in fulfilling the demand of affordable housing.
Benefits of Housing for all:
The housing for all and 100 smart cities initiative of Modi government is going to bring speedily growth in this sector. The government is investing in large amounts in both these initiatives. From 2017, the government will start working for these and this will open the gates of real estate sector to small cities as well.