December 28, 2017

NOIDA: A cumulative impact of the reforms in real estate sector would ultimately reflect in 2018 predict real estate pundits. The impact of the Real Estate Regulatory Authority (RERA) would push deliveries upon existing bookings next year while streamlining fresh launches to marginal numbers.

The builders of Noida and Greater Noida regions have already been given a mandate by the UP state government to deliver 80,000 apartments by March 2018. According to real estate developers' body Confederation of Real Estate Developers Association (Credai), the 80,000 apartments which have been shown deliverable are among those which are already on the verge of completion with occupancy and completion certificates due for release.

"Most flats which are in the last leg of completion will be handed over next year. Occupancy and completion certificates would be secured after settling dues with the respective authorities. All builders are focused on delivery for the moment," Amit Modi, vice-president, Credai - Western UP said.

RERA, GST Benami bill and demonetization - back-to-back policy changes marked 2017. "If 2017 was a year when things were set right for the long-term benefits of the industry, 2018 is the year when the builders would have to deliver on deadlines when it comes to completion and handover, so the entire focus would be on handovers because no one certainly wants to violate the RERA norms on completion deadlines. We do not see serious launces next year because primarily most builders would be preoccupied in clearing their plate," Surabhi Arora, associate director, research, colliers international said.

"2017 was a roller coaster ride for real estate, with policy changes leading to speculations regarding the investment scenario. However, with global real estate investment activity broadly tracking last year's pace, we saw India's investment market attract over USD 5.1Bn investment flows in 2017. Investor confidence was amplified on account of policy reforms including, RERA, GST, Benami Transactions Bill, demonetisation, leading the way towards a cleaner sector environment for the industry," Ramesh Nair, CEO & Country Head, JLL India said.

However, the only ones who will be able to deliver in 2018 are the ones who have at least completed 80-90% of their work already and did not really stop work all this while.

"Those who have been slow and have not pushed completion last year, will be seen dragging through 2018 as well. Talking of new launches, with land prices having shot up, and the average prices of flats still in the range of Rs 4000 psf, many builders would not see profitability to launch fresh mid-range projects, so there will be a slow-down in launches next year," Surabhi Arora added.

"As the market gains in transparency, we do see the return of the high value investor back in real estate. We also see a return of interest in high-end and luxury real estate. This are good signs for long term health of the industry, overall," Amit Modi said.

Read all Thane Real Estate Latest News

 

To Buy Spacious Flats in Thane Contact Us at 022 2580 6868

Source: timesofindia.indiatimes.com