Budget 2018 did not give much scope to the corporate sector of India. BSE Sensex has lost 840 points within 2 days of Budget 2018. This has made the private real estate players for the "wait & approach strategy" for the future prospects. Many builders have acquired land parcels either in the form of outright purchase, joint development and joint venture before the demonetization phase. But there were fewer launches in the market since then. Also, the GST Act & Real Estate Regulation Act 2016 made builders difficult to launch any new project in the market without any statutory approvals.
Although Budget 2018 has given a boost to the affordable housing segment with various schemes, still the real estate players feel that it would be difficult to get the overall cost at the affordable rates with add-on statutory prices apart from the basic cost. Private real estate players generate more profits in the luxury & the ultra-luxury residential segments but with the Budget 2018, it seems that it has a lesser scope down the line.
Now the only option for the private real estate players is "wait & approach strategy" for any corporate developments, which is the direct growth factor for real estate sector in India. Corporate Developments will make the real estate sector to get more opportunities in the form of new office spaces which helps the commercial real estate. Also increase in the corporate employee strength & with their disposable income, will give a boost to the residential real estate sector. Real estate Budget 2018 is for the poor & middle class, but there is a need for creating more buyers in the luxury & ultra-luxury residential segments. Thus, there is a need for real estate reforms in this regard.
Courtesy/By: Rakesh G.
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04 Feb 2018
