2015: The year that wasn’t for Real Estate!
The year 2016 is finally here. If we zoom into 2015, one can clearly say that it was an eventful year for Indian Real Estate. From several infra initiatives to FDI in construction to the Real Estate Regulator Bill that grabbed eyeballs during the winter session, the sector had its hands full over the year. While there were several reasons to cheer, few other expectations that did not become a reality left the industry little disappointed.
Thus, here at CommonFloor, we take a look at the year which could have been way more fruitful if certain policies had taken shape.
In a major boost to the housing sector, the RBI slashed repo rates to the tune of 125 basis points in 2015. While certain banks reduced the interest rates on home loans, not every bank jumped to the bandwagon. Thus, due to high-interest rates, the dream of several ‘prospective buyers’ of buying a home remained unfulfilled.
Post RBI’s push came the budget session from which everybody had high hopes. Industry status, single window clearance system, Land Acquisition Bill and RERA Bill had also started to make rounds as these were pretty much on the cards.
While initiatives such as GST, Benami Property Transaction Bill, etc. saw the light of the day, the basic necessity of ‘industry status’ that the sector has been asking for since long was not even brought up. Despite being just next to agriculture in terms of employment generation and contribution to the GDP, like every year, the sector’s hope of getting a status at par with industry was quashed in the Union Budget.
The market sentiments were still riding high until service tax was hiked from previous 12.5 per cent to the current 14 per cent. This directly led to the price rise of under-construction properties across the nation.
Next turnaround was expected to shape-up in the monsoon session. But the monsoon session of the Parliament last year was a complete whitewash due to constant roadblocks by the opposition, where Land acquisition bill and RERA bill were to be tabled. With unproductive monsoon session, all eyes were set on the festive season and the winter session. With several freebies up for grab, the festive season did record increased number of queries, however, not many transformed into actual transactions.
From winter session, hopes were high from the current government to deliver what was missed last time. GST and RERA bills became prime concerns, where RERA bill got a nod from the cabinet, GST has been just making rounds with no promise of getting implemented. It wouldn’t be wrong to say that the past year saw various steps in the right direction but nothing remarkable moved out of the Parliament.
All said and done, the positive story is most likely to unfold this year. The New Year 2016 is ushering in new hopes and will most likely be a better year for real estate as the impact of the revised policies and amendments announced in 2015 will be more visible. Union budget 2016-17 is expected to play a vital role with Smart India Mission in the pipeline. If all goes as planned, 2016 could be a turnaround year for the sector.
Since everything cannot be done at a time, it is imperative for the government to set their priorities right. Single-window clearance, GST Bill and RERA rule the roost in CommonFloor’s wish list!
Have a wish list too? Do share it in the comment box.
