Indian real estate market is going through a drastic transformation in recent years. Regulatory reforms like GST, RERA, rapid urbanization, rising household income and the emergence of nuclear and affordable luxury housing are the key driving factors for the growth of real estate sector. As per the joint report of CREDAI and JLL, this sector is expected to reach $180 by 2020.

 

Indian Market is Poised for Massive Growth

 

 

How will RERA (Real Estate Regulation Act) transform real estate by 2020?

 

  • Only the reputed, credible and ethical developers are expected to sustain in the market. Small and non-reputed developers will either exit the market or will be taken over the big players.

  • As a result, the trend of partnerships, joint ventures, and consolidation of developers will be on the rise.

  • You can be expected to witness only authorized, transparent and credible deals in the market with the exit of smaller/ non-reliable brokers, agents.

  • The confidence level of investors is likely to improve with enhanced credibility of the developers and exit of non-reputed brokers.

  • RERA would reduce the risk perception associated with real estate in India.

 

The norms and policies of RERA might sound stringent, but it has bolstered the transparency in real estate dealings. The changes have ensured that only credible developer will be able to survive in the industry.

 

Much hyped "Affordable Housing" has been gained considerable emphasis from the government by rolling out various incentives including Pradhan Mantri Awas Yojana. This segment will also create avenues for developers.

 

Highly developing cities like Pune, Bangaluru, Hyderabad, and Chennai have become key hubs for real estate builder. The rising demand for residential home from the IT sector has prompted the developers to adopt promising deals in these ever-growing cities.

 

How Real Estate of Pune Fared Better with the Changes?

Pune is developing at a rapid pace, especially the growth of Pimpri Chinchwad is tremendous. The emergence of IT parks in Hinjewadi, Baner, Talwade, Kharadi, Hadapsar drives record-breaking real estate inquiry from the middle-income group. The surge in demand for affordable homes has changed the entire scenario of the real estate market.

 

Localities such as Magarpatta, Hadapsar, Kharadi, Pimple Saudagar, Wakad, and Viman Nagar are the most sought-after destinations owing to their commercial importance and better connectivity.

 

Pune metro rail project is one of the key infrastructures coming to the city. The metro- network will have a significant impact on the real estate prices of the town.

 

Reiterating, other developing cities have been witnessing many changes since the government reforms came into the force.

 

Conclusion

In a nutshell, game-changing reforms like RERA and GST have created a strong base for the sector to grow, which coupled with India's robust economic advancement has provided a perfect ground for the real estate developers and investors alike.