The performance of the entire real estate sector improved in 2018. Not only the commercial, but also the residential and group housing projects received a good response from buyers, says Deepak Kapoor, Former President CREDAI-Western UP, & Director, Gulshan Homz. In an exclusive interview with Sanjeev Sinha, he talks about the current status of real estate, and shares his outlook for the sector as well as budget expectations. Excerpts:
Do you think real estate’s bad days are finally over and the sector has finally started reviving?
The real estate sector is currently overcoming its bad days and is still reviving. RERA and GST ramified the sector with instigation of different schemes and the new trends expedited the market to gain back its momentum. Improved transparency and accountability with the implementation of RERA and GST regained the buyers’ confidence in the market and they have gradually started investing in properties. These policy initiatives are expected to revive the real estate market soon.
The year 2018 definitely belonged to the commercial space. What are your expectations for 2019? Will the residential segment do better this year?
The performance of the entire real estate sector improved in 2018. Not only the commercial, but also the residential and group housing projects received a good response from buyers. With the numerous infrastructural developments in Noida in the NCR, the realty sector is expected to improve its sales and credibility. Today’s realty market is driven by end-users and being well aware of the ongoing market scenario, they are now willing to invest. As per the current market trends, end-users are mostly inclined towards luxury projects and 2019 is expected to bring about more such launches and favourable schemes for the buyers.
Is it the right time to invest in real estate, or homebuyers and investors should wait for some more time?
Post the incorporation of RERA and GST, property buyers have regained their confidence for investing in properties. They are, however, currently opting for the properties of trusted brands where all the approvals are in place so that they don’t have to wait further. So far as investing in property is concerned, we think that the recent policy initiatives combined with low property prices make every time an ideal time to invest in real estate.
What is more risk-free at this time – ready-to-move-in homes or under-construction property?
Having RERA registered, both ready-to-move-in and under-construction properties are reliable, where ready-to-move-in gives the liberty to catch a sight of the property one is ploughing money into, while under-construction property goes without this feature. Buyers are however advised to consider the credentials, status and the past track record of the builders before investing in any under-construction property. Other than that, ready-to-move-in properties are totally free from GST and a cut in the GST rate on the under-construction properties is anticipated.
What are the sector’s expectations from the upcoming budget?
The policy reforms such as RERA, GST and demonetisation have influenced the real estate market to a great extent and with the upcoming Union Budget 2019-20 it is the best possible time to push the policies for further development and sales in the market. Terminating stamp duty and registration charges in the gamut of GST would be highly acknowledged. Lastly, the sector counts on the government and urges the ministry to grant the status of ‘Industry’ to the real estate sector and put in place the ‘Single Window Clearance’ system.