Year 2016 got a big hope for the real estate sector with the government change and with that decision, it was expected that this sector will watch out a boom. But the market remained stagnant and sluggish. As a result, urgent change was needed so that this zone would be benefited. The market was in poor condition, projects delays increased, black market spread, these all culminated the market. These all reasons forced a change in real estate.
The year passes on and then come 2016, data suggests that the realty market remained stagnant. But the big steps taken by the new government has affected Real Estate. As 2016 comes to end, again, it is the time to look ahead for the New Year. But when it comes to investment good decisions making, you can find the difference between where you can get profit and where you loss.
But these steps have proven to be better for this sector at least relieving the highly priced houses which burdened the buy with number of taxes and the high ranged houses which basically includes the black money. Coming to the end of the year, currently interest rates are low and so lowering the house prices.
Moreover, experts from JLL India and Cushman and Wakefield propose that prices of real estate are likely to increase in 2017 and afar, ratifying that 2016 may be the last year that homeowners can enjoy abridged rates. People always need a place to live in, for that purpose there should be availability of houses suiting everyone’s pocket.
2016 brought virtuous tidings to home buyers. A preemptive government and heedful courts took steps which brought undeniable changes and expected to bring down home prices, make the housing market more transparent by eliminating black money hoarders and cut down delays in delivery, because of which manier had suffered. In this largely investor-driven market, now end-user will be the king.
What basically demonetization means? This word means withdrawing something and Demonetizing 500 and 1000 rupee note means withdrawing the notes from the currency in sake of eliminating the black money. This step had mopped up the black money getting the price difference between primary and reducing the resale market as it mainly included the cash payments in which 50% is the black money.
Primary market has got a major benefit because the prices are lower and the step has increased the transparency and decreased interest rates will boost up the activity. Unaffordability has now turned to affordability. With this many builders are witnessing black clouds but the top notch builders who has dealt with white money are hardly effected, just like Tata Housing, the well known name in Real Estate world.
2. The Benami Transactions (Prohibition) Amendment Act, 2016
The main motive of the act was basically to curb the black money. Benami property refers to the property purchased by the person in the name of same or other. The person on which name the property has been purchased is called Benamdar and property purchased is called Benami Property.
As per the act, properties held Benami are liable for confiscation by govt. without payment of reimbursement. This has somewhere stopped the illegal housing projects interchange. This crackdown will surely bring down the prices discouraging such investments.
Highlights of this act:
- 7 years imprisonment and fine for indulging in such kind of transactions.
- Providing false info is punishable with imprisonment of 5 years with fine.
- Initiating officer can pass this case to Adjudicating Authority will examine the evidence and can pass the order.
- Appellate Tribunal will hear the appeals against Adjudicating Authority.
3. The Real Estate (Regulation and Development) Act, 2016
The bill was a kick start move passed by the Government basically to protect the interests of home buyers in India. The act proved to be positive regarding the development and it can be said that this will prove as a medicine towards the healing of real estate injuries.
The act has come as a reinforcement to protect the rights of home buyers, registration of projects with RERA and also the builder has to pay interest in case of delays. The law has structured in a perfect order to get the transparency, reduce litigation and to increase the on time delivery. It has been the biggest reform step taken for Real Estate sector.
The bill had turn down the rates and brought transparency because of which now the builders and the investors are focusing on affordable projects, one of utmost upcoming hot project is Tata Eureka Park Noida.
4.Warning from Courts
The biggest nightmare that the developers can have, is the warning they got from the courts. In 2016, courts read the riot act for the developers and in this they use to give clear warnings irrespective of the developer’s condition. Some of the direct warnings they have given are “You sink or die” they are least bothered and they have also asked to deposit cash or refund in case of delay or the builders need to pay the interest.
These flurry crack downs will surely let down the illegal transaction and these 4 points will boost up the Real Estate sector boosting up the Indian Economy and acting as the helping hand for all those who were not able to buy the homes because of such high range.
Real Estate have always been the most preferred and the easy way to earn money and a good source for healthy and bulky money. 2016 year has witnessed a number of changes with major revolutionary steps taken by new govt. this year to eradicate black money, upsurge housing supply and on time delivery of projects. Major steps taken are Demonetization, The Benami Transactions (Prohibition) Amendment Act, 2016, The Real Estate (Regulation and Development) Act, 2016 and Warning from Courts.