Skip to main content

RE RA, GST, REITs to usher in a new paradigm in the real estate sector

By
India’s domestic economy has been on the recovery curve, with the real estate and construction sector taking a leading position. Recent steps taken by the government —from the demonetisation drive and the Real Estate Regulatory Act (RERA) to the Goods and Services Tax (GST) and Real Estate Investment Trusts (REITs) — are all working towards bringing in transparency and increased investor confidence in the real estate market. India is fast emerging as an attractive investment market with positive macro-economic sentiment - government initiatives to spur investments and a developing real estate market, are all integrating to make India a positive market for attracting investors.
Underlining India’s position as a robust commercial real estate market is its appeal as an established outsourcing hub, which is expected to fuel expansion initiatives by corporate real estate occupiers from around the globe. The overall sentiment among corporate occupiers remains optimistic in recent times and the country continues to retain its healthy position in the global economy, with better growth prospects expected to support commercial real estate transactions, going forward as well.
The residential market in 2016 continued its shift from a pure, price play mechanism towards a market that is driven by commitment to delivery, quality and right pricing strategies. High price points, inventory pressures and cautious buyer approach, resulted in a muted demand in key metro cities during the year. However, recent initiatives by the government, aimed at bringing in transparency and boosting investor confidence coupled with developers restructuring their marketing strategies to attract home-buyers will hopefully help with the revival of the segment. Also, with the affordable housing segment finally getting infrastructure status, the residential market can expect to see further traction in the near future, including participation from private developers.
Effective implementation of RERA can be a game changer for the real estate and construction sector. In addition, the constitutional amendment for an early implementation of the landmark Goods and Services Tax (GST) has been India’s biggest structural reform in decades. The landmark regulation will remove a plethora of indirect taxes and establish India as a unified market.
In 2017, India will continue to retain its position as a bright spot in the global economy, with better growth prospects expected to support commercial space leasing in 2017. Even though the global economic scenario remains muted with a rising trend of protectionism in trade and services, India’s appeal as an established outsourcing market will continue to fuel space transactions by corporate firms based out of the US and EMEA.
Despite the disruption caused by demonetisation, domestic macro-economic sentiments are likely to remain positive, relative to other major economies in the world, which will also drive leasing from domestic corporate firms.
Overall, the outlook for India’s real estate sector remains positive. We can expect more capital inflows into the segment in the year 2017, providing a stronger thrust to the sector. The author is chairman, India and South East Asia, CBRE
Hindustan Times New Delhi,25th February 2017

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more

Govt invites applications for RBI deputy governor's post, last date Nov 30

By
  The government has invited applications for the post of deputy governor of Reserve Bank of India from interested candidates with at least 25 years of experience and below 60 years of age as on January 15, 2025.One of the deputy governors, Michael Patra’s current term will end on January 15.According to an advertisement, candidates should have at least 25 years of work experience in Public Administration, including experience at the level of secretary or equivalent in the Government of India, or persons who have at least 25 years of work experience in an Indian or International Public Financial Institutions; or persons of exceptional merit and track record at the national or international level in the relevant field.The last date of submission of the application is November 30, 2024.   It has been clarified that the Financial Sector Regulatory Appointments Search Committee (FSRASC) – a body which will select the candidates- is free to identify and recommend any other person a...
Post a Comment
Read more