The implementation of RERA and GST is set to improve buyer sentiment across Delhi NCR. Increased activity has urged developers to re-enter the markets with new launches. Several developers have initiated the process to raise funds for various purposes ranging from completing ongoing projects, launches new projects or even clearing dues.
Off late, the Indian realty sector has started moving towards becoming more organised as it is getting stronger on the reforms front. With the inception of Real Estate (Regulation and Development) Act and majority of states making it operational, investor and buyer sentiment has started to pick up pace. With the input tax credit to be passed on by the developers to its customers, the post GST real estate sector is expected to bring renewed demand in the next few months. Government’s initiatives towards affordable housing, Smart Cities, AMRUT, Housing for All and other infrastructural advancements drifts our focus towards better regulated realty sector. In a nut shell, the realty sector in India is looking at the much-needed and awaited revolution, and in the near future, we will witness a major revamp that is projected to benefit the economy in the long run.
North India’s real estate market is largely constituted by the National Capital Region (NCR) region, which accounts to one of the biggest realty markets in the country. Districts from Uttar Pradesh, Haryana and Rajasthan, along with the NCT of Delhi constitute the NCR region. NCR has a huge chunk of developers working towards developing residential and commercial projects. All the NCR states have made RERA applicable, with only Haryana left to make the website operational.
With GST and RERA now in place, activity on the buyer and investor front has amplified, too. With market gaining transparency and promise of timely project deliveries, positive sentiments are floating and customers are looking towards real estate as an investment avenue. As sentiments gain momentum, developers are gearing up to launch more projects and deliver the ones in pipeline. “RERA and GST are aimed at simplifying the real estate buying, taxing and redressal processes which will directly benefit its stakeholders. These reforms will act as long term catalysts as we see the developers raising funds to launch new projects and finish those in final stages,” explains Kushagr Ansal, Director, Ansal Housing.
Recently, the real estate company Sikka Group raised Rs 230 crores from a leading Indian bank for three of its housing projects. The amount raised is planned to be utilised towards speeding up the construction of these projects situated in Sector 79 and 143, Noida.
In a similar manner, realty firm Gulshan Homz has initiated an investment of Rs 400 crores to develop two of its projects in Greater Noida West and Sector 144 along the Noida Expressway. Another Noida realty major, RG group had raised Rs 170 crores from a private equity firm for its housing project in Noida and to clear its dues to the development authority. Very soon, NCR based developer, Paramount Group is expected to raise funds towards speeding up the completion of one of its ongoing residential projects which is already running ahead of its schedule.
“Project launches had dipped last year, but due to the implementation of RERA and GST, they are quickly gaining pace again. As these reforms settle in, market will respond soon and will observe better stakeholder interest,” avers Vikas Bhasin, MD, Saya Group. In a recent example of fund raising for project launches, leading financial investor KKR had committed to invest Rs 200 crores in NCR based affordable housing player, Signature Global. The company had also launched two affordable housing projects in Gurugram in Sector 37D and 107. The projects would also be coming up under the Haryana Affordable Housing Policy like their previous projects.
In Noida, realty firm Gaursons Group, which has been into development of residential and commercial projects in Delhi NCR, has planned to invest Rs 150 crores to develop two luxurious towers as the company expects better demand for luxurious dwellings with the decrease in supply in the segment. The company’s recently launched twin towers will have a total number of 52 residences with 26 units in each tower with state of the art facilities and amenities.
With the market gaining momentum and buyers getting in the mode of investment, real estate sector in India is projected to perform better than ever with a regulator sitting in each state to monitor all the activities. With the festive season of this year just a month away, buyers are also gearing up to invest in the era of Indian real estate.
Disclaimer: The views expressed in the article are solely of the author and may not represent 99acres.com's opinions on the subject. 99acres.com does not take responsibility for any actions taken based on the information shared by the author.