What's Next for Real Estate? Expectations from the New Government
The real estate sector is hoping for a boost from the new government, with fine-tuning of RERA, industry status, and a relook at GST on under-construction homes topping the agenda.
Real EstateReraGstIndustry StatusNew GovernmentReal Estate MumbaiJun 05, 2024
One of the key areas where the sector is expecting support is the fine-tuning of the Real Estate (Regulation and Development) Act, 2016 (RERA). While RERA was introduced to bring transparency and accountability to the sector, its implementation has been patchy in many states. The sector is hoping that the new government will take steps to iron out the wrinkles and make it more effective.
Another long-standing demand of the sector is industry status. The real estate sector is a significant contributor to the country's GDP, but it is not accorded the same status as other industries. This has made it difficult for developers to access funding and other benefits that are available to other industries. The sector is hoping that the new government will grant it industry status, which will help to attract more investment and create jobs.
The sector is also expecting a relook at the Goods and Services Tax (GST) on under-construction homes. The current GST rate of 12% is seen as too high, and many developers are finding it difficult to pass on the cost to buyers. The sector is hoping that the new government will reduce the GST rate or introduce a more nuanced system that takes into account the different stages of construction.
The Indian real estate sector has been growing rapidly over the past decade, driven by urbanization and increasing demand for housing and commercial space. However, the sector has also faced several challenges, including regulatory hurdles, liquidity crunches, and environmental concerns.
The National Real Estate Development Council (NAREDCO) is a leading industry body that represents the real estate sector in India. NAREDCO has been working closely with the government to address the sector's challenges and promote sustainable development.
Frequently Asked Questions
What is RERA?
RERA stands for Real Estate (Regulation and Development) Act, 2016, which is a law that aims to bring transparency and accountability to the real estate sector.
Why is industry status important for real estate?
Industry status is important for real estate because it will help developers access funding and other benefits that are available to other industries, and create jobs.
What is the current GST rate on under-construction homes?
The current GST rate on under-construction homes is 12%.
What are the challenges faced by the real estate sector?
The real estate sector faces several challenges, including regulatory hurdles, liquidity crunches, and environmental concerns.
What is NAREDCO?
NAREDCO is the National Real Estate Development Council, a leading industry body that represents the real estate sector in India.
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