A series of decisions and laws promise to bring good days to the real estate market
The real estate market has been reeling under a slump and trying hard to earn profits. However, in the last few months, a lot has been done to inject new life into the market. To make buying and selling process more crystal clear, laws have been enacted to bridge the gap between developers and end-users. Experts say these laws will have a positive impact on the demand. HappyKeys lists the new norms that give you strong reasons to buy new homes in the NCR market.
Service tax relaxation: In a recent verdict, the Delhi High Court ruled that the buyers of under construction flats are exempted from paying service tax. The judgment says that no service tax can be charged from buyers who have purchased apartments after 2012. The court has also directed builders to refund the collected service tax with interest rate at 6%. The experts are of view that the exclusion of service tax from properties under construction is expected to witness improved market sentiments.
Circle rate cut to help market: Recently, Gurgaon administration has sought a 15 per cent cut in circle rate of properties. Market experts believe this move will push more buyers towards investing in the realty market and help to restore confidence in the real estate market.
REIT rule relaxation: Small investors have much to cheer about the government’s new policies that remove hurdles in real estate and offer easy norms to end-users. The new resolution gives freedom to REITs to invest more in under-construction projects. In a new amendment by SEBI, mid-segment investors can invest up to 20 per cent which is likely to lead to an increase in returns.
Floor safety rule: Noida and Greater Noida Development Authorities have made new clause mandatory for developers. From now developers are required to seek floor wise safety certification from IITs for any under-construction projects. The institution will also verify quality constriction and earthquake measures have been implemented or not. This move will certainly ease the burden of home buyers who have to verify from several safety angle.
New exit policy to help buyers: With the enforcement of new exit policy, builders can complete their ongoing projects nearing completion and give possession of flats on time.
7th Pay Commission: The implementation of 7th Pay Commission recommendations has raised the salaries of government employees and pensioners which will boost purchasing power of home buyer. Huge property transaction is expected in real estate sector.
Huge pile of unsold inventory: Rising inventory of unsold flats has led to price correction in Delhi-NCR. According to the latest report by ASSOCHAM, Delhi NCR has the highest number of unsold inventory in real estate with 250,000 units, followed by Mumbai metropolitan region at 98,000 units. New buyers can take the advantage of this situation and can bargain hard while closing the deal.
Model Shop Establishment Act: The rule will give freedom to retail outlets to keep open 24×7. This act will promote investment in commercial sector. Investors can look in the commercial space as in the near future prices may go up.