Real estate acted as a bank for the people who wanted to safe lock their black money. But with the introduction of regulatory rules like RERA, GST, and demonetization, Government is hoping to curb the menace of black money parking space: real estate. As per a recent report, real estate has witnessed dips in the market prices and GST has impacted the demand-supply curve. But developers are expecting the market to be more stabilized and shaped up in 2018 as the regulatory norms will strengthen the market as well as provide a platform for transparency between the home buyers and the developers. The transparency will attract people to invest in real estate which will further lead to a boom, gradually. The radical changes will make potential investors relook into the real estate market with much greater enthusiasm.
According to a report by World Bank, Foreign Direct Investment (FDI) in India will witness an appreciation of 7-8% in the year 2018-2019. Introduction of regulatory norms has made India the fastest growing investment destination. The price levels of the property may not see a drastic change, but Affordable Housing Scheme introduces by the Government of India will lead to more number of home buyers and investors. Properties under Affordable Housing Scheme are already selling like hot cakes in the market. Bengaluru is also reported to have an appreciation in the demand for commercial and residential properties, followed by Mumbai and Delhi NCT.
The year 2017 may not have helped the real estate industry to boom but yes it has helped to shape up the industry for a long tenure of time. 2018 will gradually show some signs of recovery and the effect will be long term. Real Estate Investment Trust (REITs) are all set to provide opportunities to even smaller investors which will further add up to the growth of real estate industry in 2018. Developers have crossed their fingers with ease for the year 2018 as the market will bring more stability and investment and all these factors will help in mutual growth.