Category: Affordable Housing

Rental Reforms Redefine The Indian Real Estate Sector

by Anuj Puri

High time to fully explore and unbox its massive potential

Anuj Puri, Chairman – Anarock Property Consultants

Several breakthrough reforms with pertinence to the Indian real estate sector saw the light of the day over the last one year.

Be it demonetization – the Government’s ‘surgical strike’ against black money – the revolutionary RERA or the unified tax regime of GST – all bore the power of rendering the Indian real estate sector more transparent and professional.

The upward trajectory of consumer sentiment is a strong indicator that the market has responded well to these reforms. The incumbent Government has embarked on a determined journey to transform the Indian realty sector into a more wholesome industry.

While the primary and secondary residential markets undoubtedly benefited from the plethora of reforms, the rental market has also received a shot in the arm. Various reforms and announcements made over the last one year can potentially boost this crucial segment of the Indian real estate sector:

  • April 2017: An End to Fake Rent Receipts

Under Section 10(13A) of the Income Tax Act,

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Residential Realty Poised For Revival In Festive Season 2017

by Anuj Puri

Anuj Puri, Chairman – Anarock Property Consultants

Every year, the end of August ushers in the beginning of festive season in India.

Religious sentiments lead innumerable Indians to plan important purchases and investments – including real estate – during this period.

Naturally, developers also plan for these months well ahead of their arrival with a view to cash in on this positive sentiment.

Unfortunately, last year’s festive season did not meet their expectations as buyers stayed away from the market – primarily due to execution delays, an uncertain economic scenario and unattractively high prices.

Demonetization also played a key part in the depressed sentiment – not only in the resale market as was at first expected, but in primary sales as well.

Most aspiring home buyers deferred their purchase decisions, preferring to wait until RERA kicked in fully. Though most developers offered compelling discounts and schemes, buyers stuck to their cautious approach during the last festive season.

However, the 2017 festive season has started on an altogether different and far more positive note.

While structural reforms by ways of RERA and GST have helped firm up buyer sentiment,

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Affordable Housing Steals The Show In 2017

by Anuj Puri

Anuj Puri, Chairman – Anarock Property Consultants

After recognizing a massive gap of housing in India, the Union government had announced ‘Housing for All’ by 2022 in July 2015 to achieve the staggering target of bridging a gap of more 1.9 crore houses. 96% out of these are required for the Lower Income Groups (LIG) and Economically Weaker Sections (EWS) groups.

In India, while the population is growing at more than 2.1% every year and may touch 1.51 billion by 2030, growth in housing has been unable to keep the same pace. The Central and States governments are now contemplating many ways and means to provide access to housing for all.

Affordable housing will not only fill the housing gap but be the next major economic growth driver by creating more than 2 million jobs during the period till 2022. To fill the massive gap of affordable housing in India, the government has come up with a spate of many initiatives:

  • To encourage the PPP (Public Private Partnerships) module which can amplify affordable housing, the Union Budget 2016-17 announced that developers would be exempt from paying tax on profits in this segment for five years starting 2016
  • The Government has increased the time limit to complete affordable housing projects from 3 to 5 years.

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