How is RERA impacting the real estate industry, and how does it benefit the customer?
The real estate industry is responding well to RERA, its impact has been positive and it is beneficial for the consumers. RERA is a compendium of rules and regulations which has taken into account the prevailing issues and problems facing the industry – the biggest of them all being the delay in projects – and has formulated necessary rules to resolve them.
RERA is consumer-friendly, as it addresses mostly the issues and grievances being faced by property buyers. Now developers will have to ensuredelivery of their projects on time or face the consequences. RERA also ensures more transparency in dealings, making the procedures and systems more streamlined and beneficial to the consumers.
There is a move to bring real estate under the GST regime; what will be the impact of such a development?
Currently GST is applicable only for under-construction properties. If the tax is to be made applicable on real estateper se, that would tantamount to bringing all transactions under its ambit, whether they are under construction, completed, ready to move in, or sale purchase, resale, etc.
Now if all properties are to be brought under GST, then stamp duty and registration fees should also be merged with GST so the buyer is faced with only one figure. Besides, the GST rate should be lowered appropriately so that the buyer is not burdened excessively.
How has the industry benefitted, if at all, from the affordable housing initiative?
The real estate industry is in the process of benefitting from affordable housing. Several factors can be attributed to this prevailing phenomenon of affordable housing. First of all the demand for affordable housing in current circumstances is soaring leaps and bounds, as it satiates the demand of the masses to a great extent in comparison to that of other high-end segments.Going for affordable housing today is a safe bet as the market is sufficiently large.
In view of the high cost of land, which undermines the basic premise of affordable housing, the government should promote development under the PPP model where it provides the land. That’s the only way to involve the private sector, and achieve the targets of ‘Housing for All by 2022’.
What is in store for the building products industry; how can they make the most of growth in the real estate industry?
Incessant growth is in store for the building products industry, as the focus shifts to new innovative products with better specifications and quality, and more cost effectiveness.
How is the building products industry responding to your concerns post-RERA & GST?
The situation post RERA and GST is in the nascent stage for the building products industry, and it is coping up well with the new rules, regulations and requirements and shall adjust accordingly.