What Are The Major Changes in Indian Realty Market?

This year we have observed real estate was in the news for rights of the buyers as well as developers, with the announcement of government new policy initiatives which have the great impact on players of real estate industry.

Here are some policy initiatives which we should know about it. There are:

First time home buyers will get interest subsidy

To create housing demand for buyers, the union budget 2016-17 proposed for the deduction of extra interest of Rs 50,000 per annum. This is for the first time home buyers who have loan up to Rs 35 lakh, the interest of houses next year will not exceed Rs 50 lakh. This step will influence home sales in non-metros for long term where residential prices are not much higher as compared to metros.

For affordable housing exemption on service tax

There is an exemption of service tax on construction for affordable housing segment which is up to 60 square meters. Under the scheme, the Central or State Government will propel construction in affordable segment across India and it will boost the greater collaboration between the private and public sectors along with affordable home construction. 

Real Estate Regulation and Development Act 2016

The Real Estate Regulation and Development act 2016 was came into force in March which has laid down a framework under it change the way of real estate sector operates in India. This acts aimed to enhance transparency, great accountability, set the standard forsake the interest of their stakeholders and also improve the execution of due properties disputes.

Alternation to the Benami Transaction Act

This Benami Transaction’s Amendment Act, 2016 was introduced which says rules and penalties will charge against the “benami” transactions. With the aim to make India an attractive destination, one need to maintain the regulatory mechanism for dealing disputes which arise during the transaction and it also helps to increase the investors’ participation for continuous flow of sector.

500 and 1000 rupee note are demonetized

The demonetization of INR 500 and 1000 rupee notes by Prime Minister perceives significant reforms. For the long term, this measure helps RERA act 2016 which will set the realty industry according to the international standard of business and it will be resulting in more fund flow from institutional investors and banks.

For affordable housing construction, 100% deduction in profits

For promoting affordable housing, the finance minister has proposed 100 percent deduction in profits and to take responsibility for housing projects for up to 30 sq meters in four cities and 60 sq meters in other cities that are approved during June to March 2019. The second condition was that the project should be completed within 3 years of approval.

Foreign investors can get permanent residency status (PRS)

Union Cabinet approved the permanent residency status for foreign investors with respect to various conditions along with a provision of renewal for the next 10 years. According to permanent residency status, the holders’ dependents/ spouse take up employment in India.

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