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Real esate update 1jan2016


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Brighter days ahead for the Real Estate Sector in india

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Real esate update 1jan2016

  1. 1. Real Estate Update 01 January 2016 CS Sanjay H. Indulkar Page 1 Update Friday, 01 January 2016 Industry /Sector Real Estate Contact CS Sanjay H. Indulkar- Company Secretary Mobile 9867161367 email: linkedin-connect : Brighter days ahead for the Real Estate Sector Indian real estate market is expected to witness an upswing in the year 2016. Several policy reforms by the central government coupled with growing GDP, controlled inflation, low fiscal deficit and improving liquidity are expected to bring some good news for the industry. Realty Highlights for 2015 *Record PE investments of Rs.18,300 crore in first three quarters of 2015. * RBI liberalise FDI and ECB norms *Rise of property portals with emerging trend of online home sales *Entry of institutional investors in retail real estate * Corporate land deals pick up in sluggish real estate market * Shift from investments in physical to financial assets. * Crucial reform bills like Land Acquisition Bill, Real Estate Regulation Bill, GST Bill, Arbitration Bills stuck in parliament. * REITs fail to take off due to unfavourable realty tax regime. * Not a single IPO launched *Slump in new project launches * High demand for ready-to-move homes while under-construction homes take a beating due to high delivery defaults The Indian real estate market is up for brighter days in the coming years and all the stakeholders – developers, end-users, buyers and sellers can breathe a sigh of relief in 2016 Why ? 1. Housing for all: This ambitious project is expected to produce over 20 million housing units by 2022 2. AMRUT: Launched by the Prime Minister in April 2015 , AMRUT or the Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
  2. 2. Real Estate Update 01 January 2016 CS Sanjay H. Indulkar Page 2 3. Smart Cities – The proposed development of 100 Smart Cities in the country is expected to provide abundant opportunities to the real estate developers, who will not only have to focus on technology-driven homes but also affordability and lifestyle 4 Regulatory: Various regulatory initiatives will bring the transparency in this sector. This sector may become more compliances oriented, when the all the bills will become Act . Take away will be, developers will become more professional in execution of the project . Environment ministry is seriously considering a radical trimming of the green code in building by laws and the National Building Code. Projects with built-up size area of 5,000-20,000 sq m will face around 12 conditions, 20,000-50,000 sq m projects will have to reckon with around 18 conditions, and projects over 50,000 sq m will have to comply with 20-24 ecological compliance conditions. More good news for builders: the environment ministry is keen to delegate powers of approval to states and local authorities, so that clearance is faster. Currently, all construction projects spread across a built-up area over 20,000 sq m need the ministry's green nod. 5. Economy: To add to the list of positives that 2015 can boast of, several central government initiatives also improved India’s stance in Global Competitiveness Index and World Bank’s Ease of Doing Business Ranking in the country in the last one year. In addition to this, the recent downturn in China’s market along with high labour cost present elsewhere, is also working in favour of India. It is heartening to note that Indian economy is on a recovery mode - from hovering around 5 per cent for the past many years to a projected figure of approximately 7.5 per cent in the current year. Future out Look 2016 : # Implantation of REITS # Clearance of Land acquisition bills # Clearance of Real Estate Bill #Get Industry Status