The year 2016 was yet another lackluster year for the Indian Real Estate Industry in terms of sales and new launches. However, the flurry of policy announcements in the form of RERA, GST, Demonetization and Benami act made during the year have ensured that 2016 will be remembered as a year of reincarnation of the Indian Real Estate Industry.
The perennial issues of transparency that had severely impacted buyers sentiment were addressed by the government by making RERA into a reality. Passing of RERA was welcomed by almost all the recognized builders. It helps weed out the bad apples of the developer community, that normally tarnishes the image of the entire real estate developers. The sector is expected to witness consolidation in the coming years, predominantly due to the smaller players who may find complying with RERA norms difficult as well as expensive and may end up merging with a stronger entity.
Having said that, well established developers too will now have to re-look at their strategy of new launches, project planning and execution. Not to mention the importance of better capital deployment will gain the center stage. With the vigil increasing on Benami transaction and black money, the early stage investors and speculators almost abandoned the pre-launch and early stage construction projects. However, there has been a gradual increase in the enquiries of ready-to-move-in projects. This is a good sign for the industry, as it clearly indicates that the interest of genuine end users that stands to gain momentum over a period of time.
Overall, in 2016, the rules of the games were reset, but, its evident that all the policy development and announcements made during the year have laid down a very strong ground for the revival of industry.QuikrHomes Annual Report 2016 - India Residential Real Estate
Get more of real estate
Subscribe to our mailing list and get interesting real estate stuff updates to your email inbox.