The Indian real estate has witnessed a sea change, over the last couple of years. However, in spite of the advancements in construction, the use of high-end technology, the advent of smart homes and flexible apartment configurations being made available according to the evolving market, the industry is going through a lull. Real estate experts maintain that with all the significant policies having been implemented in the last five years, 2019 could be the year that the property market bounces back. Nevertheless, they add that several niggling issues also need to be addressed, so that all the stakeholders in the sector can reap the benefits of a bright first quarter in 2019.

GST rate on real estate

Revising the standards of the Goods and Services Tax (GST) on various segments connected to the real estate industry could help both, consumers and developers.

Merging of GST with stamp duty and registration

Property buyers are required to pay 12.5 percent GST on under-construction projects, five percent stamp duty (which has now increased to six percent in Mumbai) and registration charges.

Improvement in finance and an end to the NBFC crisis

The current financial turmoil, vis-à-vis NBFCs (non-banking financial companies) and HFCs (housing finance companies) are likely playing out in the year 2019. Mayank Ruia, founder, and CEO of Maia Estates LLP points out that its effect on liquidity available to the developers shall determine the pace of new projects and launches. “The financial chaos may also prompt developers to liquidate existing stock aggressively, to avoid coercion. However, as long as home loans are easily available and at affordable rates, good opportunities will be available for consumers,” Ruia concludes.

Macroeconomic factors that could affect the property market in 2019

• The general elections in 2019, could be a significant turning point in how the real estate market will behave and progress.
• The real estate industry is expected to see a continuing process of clean-up in 2019, with evolving regulations on funding and the further evolution and implementation of the Real Estate (Regulation and Development) Act (RERA).

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