The Indian real estate sector has received a shape particularly after the Narendra Modi-led NDA Government came into power in 2014. This Government worked towards offering uniformity to the earlier unorganized property market and thus today when the entire nation is waiting for the results of recently concluded general elections we are letting you know the reforms that gave the Indian realty sector a new dimension.
- Real Estate Regulatory Authority 2016
On 1st May 2016, the Union Government introduced the RERA Act and this rule empowered the homebuyers in many ways. Firstly, this law protected the homebuyers interest as they can file a grievance against the builder and can also ask the authority to resolve multiple issues related to home buying. The introduction of RERA Act has bought transparency, credibility and accountability in the Indian real estate sector.
- Goods and Service Tax
This reform is commonly known as GST and was introduced on 1st July 2017 with the aim to end multiple taxes. Under this reform, earlier 12 percent GST was fixed for the under-construction properties. However, the same was cut down to 5 percent for the under-construction housing units and the Goods and Service tax stood that 8 percent for the residential units that fall under the affordable housing category. Other than filling the gap between demand and supply in the real estate sector the formation of GST rule is expected to bring down the construction cost. Earlier this year, the GST Council also defined that the affordable housing will offer a maximum benefit of GST to the homebuyers with a budget of Rs.45 lakh.
- Relaxation in FDI Rules
The relaxation or liberty in the FDI [Foreign Direct Investment] laws made working easier in the Indian real estate sector. In fact, the real estate experts feel that the liberalization in the Foreign Direct Investment will not only address the demand and supply of the housing sector but will also increase the speed of construction. Both these factors will result in timely delivery of housing units.
The Real Estate Investment Trust is the first of its kind initiative launched in India under the leadership of Narendra Modi-led Union Government. REIT is a forum for operating a portfolio in the Indian real estate sector and the investors can make investments in multiple categories like logistics, manufacturing, banking and commercial properties. With the launch of REIT, the commercial sector is booming with investment as the return on investment is on a high.
The Pradhan Mantri Aawas Yojna also known as PMAY is the credit-linked subsidy scheme introduced in the year 2015 with the aim to offer Housing for All by 2022. This scheme gave hope to lakhs of homebuyers to own a home and the subsidy of Rs. 2.67 lakhs to every woman homebuyers gave confidence to the homebuyers. The homebuyers are segregated under multiple categories like EWS [Economically Weaker Section], MIG [Middle Income Group I and II].
- Smart Cities
This is also a magnificent scheme launched by the Modi Government with the aim to develop tier II cities in a smart manner. The cities that are selected under this mission will have smart urban infrastructure, connectivity, internet services, e-governance, 24×7 water and power supply. This project of worth Rs. 1 lakh crore is planned to develop 100 cities under its umbrella and all this upgrade the living standards of the people.
The Atal Mission for Rejuvenation and Urban Transformation commonly popular as AMRUT is launched with a budget of Rs. 77,000 crores and aims to offer better water, sewage, transportation and other basic facilities to the citizens.