Round up of the year 2016 and outlook of 2017 for real estate sector

The quotes are from:

1. Mr.Om Ahuja, CEO, Residential, Brigade Group
 2. Mr.Suresh Hari, Secretary, CREDAI Bengaluru
3. Mr. Cyriac Joseph, Senior Vice President, Marketing of Vaishnavi group  

Round up of the year 2016 and outlook of 2017 for real estate sector

Mr. Suresh Hari, Secretary, CREDAI Bangalore.

The change maker Bill of Real Estate (Regulation and Development) Bill 2016 will take the industry to a new level. Apart from regulating the industry, it enables customers to have more equitable participation in the development of dwellings of their choice. While the bill addresses the essential need of the consumer, it falters to involve all stakeholders into the ambit of the Act. The industry demand of uniform real estate tax across county is long-pending. Title registration charges and duty varies from state to state and the need to reduce this burden is not achieved. Title Assurance if established with collected duty and charges, it will be a big support to consumers and will enable the industry to scale up to the national mission in 2017.

Mr. Om Ahuja, CEO - Residential, Brigade Enterprises Ltd.

Commercial office demand in Bengaluru was at its best in 2016 with approximately 13 million sq feet of leasing. Bengaluru has the lowest vacancy level, when it comes to office space and it’s the best in the country. This reflects positive business confidence in the city by business houses and multinationals for the year 2017. India has only two such cities witnessing such large leasing volumes,

Mr. Cyriac Joseph | Senior Vice President – Marketing of Vaishnavi group    

2016 has been a relatively encouraging year for the real-estate sector in general and Bangalore in particular. Optimally sized and priced homes targeted at the burgeoning urban middle-class have continued to perform well, while sales of luxury to super-premium homes has, comparatively, been muted.

Overall the challenges in 2016 mirrored the challenges of earlier years. The project approval process continues to pose a major challenge in terms of time taken to obtain the multiple approvals required from various authorities. On the construction side, the lack of skilled labour and the ever-rising cost of construction continue to pose a challenge.

RERA will be a game changer in our view, and will impact the real estate industry in a positive manner in 2017. As the industry in general and developers in particular move towards an era of accountability and transparency, the major beneficiaries without doubt are the end consumers, whose confidence and morale will be bolstered. This, in turn, will signal better and faster home sales and possibly a spurt in launches in some key markets.

Further, with demonetization, it is widely expected that interest rates will come down not only making housing more affordable to the common man but enabling a larger base of customers to purchase their dream home.

The introduction of GST is a progressive move and will provide the much required clarity in terms of the tax structure.