Real Estate: Demand and Supply – Few Thoughts… Good News, Good News, Good News: Thankfully Lots and Lots of Good News in the Real Estate Industry. Budget: The first time the budget has really provided a lot of support to the consumer and developer.
The Tax benefits to affordable housing extended for projects which will be registered before March 2020, no notional rent on the second house, the benefit of rollover of capital gain tax increased from one house to two houses, tax on notional rent on unsold inventory to be levied after 2 years.
Thank you, policymakers much needed relief! Economy: On a fast track and we see a vision of becoming a $ 10 trillion economy. Indian Real Estate to be valued at $180 Billion by 2020! Moreover, the middle class expanded substantially and migrate to cities. But behind the curtain, I wonder why we see loads of unsold inventory, and where we go wrong and create pain in the industry.
Close to 7 lac unsold residential units today – this is the main reason for the pain! The government of India has brought in many new laws and instruments to regulate and control compliance and control in Real Estate Industry viz RERA, Benami Act, IRP, etc. This has certainly increased the confidence of the consumer and investor but can’t we have a REGULATOR who can regionally study the demand for residential and commercial inventory desired and then create an inventory supply line?
Government, Policy Makers, Developers, Consultants, and all other stakeholders don’t you all feel that if we had a Regulated Demand and Supply Pool created we could have a much better scenario in the industry? I will raise it with all stakeholders and figure out the possibilities.