Real Estate Regulation and Development Act 2016
The real estate sector of India, especially residential sector, which has been stagnant since last couple of years, is likely to rebound in the coming months. The steps taken by the government to bring transparency in the real estate sector will boost the sector in long run.
The stagnancy in the realty sector resulted in high inventory levels, diminished demand and limited liquidity saw sales and prices plummet, impacting new launches in the past few years. Dhoot Group, a prominent name in the real estate sector highlights that the introduction of much needed changes in the economy and various initiatives announced by the government will bring in cheer for the realty sector.
According to a JLL report, as per statistics, new residential project launches reduced by 6 per cent in Jan-March 2016 period over Oct-Dec 2015. For FY 2015-16, the number of new launches stood at 1,81,294 units compared to 2,16,082 units in FY 2014-15, equaling a drop of 16 per cent.
Overall residential sales were down in the FY 2015-16 compared to FY 2014-15. As per recent data, 1, 58,211 units were sold in FY 2015-16 vs. 1, 61,875 units sold in FY 2014-15, which is a drop of 2.2 per cent. However, a positive twist to this otherwise grim situation is the rise in sales in Q1CY2016. This quarter saw a sale of 42,521 units compared to 39,001 units sold in Q4CY2015 – an increase of 9 per cent.
Talking about the Real Estate Regulation and Development Act 2016, Pawan Kumar Dhoot asserted that it will bring in the much needed transparency in the realty sector and safeguard the interest of home buyers. He further added that the act will encourage investments from foreign and domestic financial institutions as well as increase the credibility of developers.