BRIEF-Grounds Real Estate Development Invests In Microappartements In Leipzig. Reuters Staff. 1 Min Read. March 7 (Reuters) – Grounds Real Estate Development AG: * INVESTS IN FURTHER PROJECT DEVELOPMENT OF MICROAPPARTEMENTS NEAR UNIVERSITIES IN LEIPZIG. * APPROXIMATELY 136 MICRO
Indian Real Estate Industry Biggest Rise or fall?-Memories of a dicey 2016
2016 proved to be a bumpy ride for Real Estate sector in India. To a point where no longer we have the old shenanigans of money or documentation, and Real Estate companies are much more streamlined and transparent now. The ground has been set, the foundation laid and constructive policies are in place to reshape the industry and build a progressive 2017. What happened in 2016?
1. Real Estate (Regulation and Development) Act 2016 [RERA]
India has built the identity as the bright spot in the global economy but shoddy system for infrastructure permits was keeping the foreign investors away. The notion was broken by RERA, and now with transparent accounting, secure transactions and management systems, India’s ranking have improved. Regulatory bodies are being established in every state and this year, we shall see the effect brought about by RERA on industry.
2. Real Estate Investment Trusts [REIT]
Rules and regulations for REIT were relaxed in the 2016 budget and SEBI has already notified final regulations for Real Estate Investment Trusts. The investment cap for under-construction projects has been raised to 20% from earlier 10%. Foreign Portfolio Investors (FPI) can now invest in Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs) and Category III alternative investment funds (AIFs) in India. Through REIT various institutions, high net worth individuals, and ordinary investors can provide much-needed funds to developers.
3. Goods and Services Tax [GST]
GST will be applicable in India soon. One common Indirect tax on manufacture, sale and consumption of goods and services would eventually unite India as one single market. However, there is lack of clarity on the provisions for Real Estate industry in GST. But it is clear that the service tax imposed by Central Government and the VAT imposed by various State Governments would cease to exist and there will be a new and uniform taxation. Also, GST will have huge impact on the prices of real estate.
4. Make in India
With the boost from Union Government, the manufacturing sector is growing steadily and this growth is reflected in the increased leasing of Commercial real estate property. In the coming years, through robust investment policies and ease of doing business, global organizations would seek to establish manufacturing base in India. Commercial real estate properties would see increased inquiries in the coming days.
5. Smart Cities Mission
With the advancement of technology and Internet of Things in 2016, cities are now looking for expansion and upgrade. Properties with focus on improving the quality of management and better life would come up in more than 100 tier II and tier III cities. New land for creating satellite towns of larger cities and city infrastructure would provide the boost to the industry.
6. Affordable Housing Mission
Through Sardar Patel Urban Housing Mission, Union Government has chalked out agenda for creating 30 million affordable houses by 2022. The chief provision of this mission is the PPP model. PPP model would give developers enough opportunities. There would be increased demand for commercial real estate property and residential real estate property around such townships.
This one decision created so much hype around the real estate industry that is yet to die down but overall, the impact of demonetization on the industry is thought to be positive. From interest rates for loans to accountability in payments, everything that was required for a stable industry has been done and the road ahead is promising for the industry. There was a brief drop in real estate transaction but demand is expected to increase as the market normalizes and the prices slowly get softened.
8. Green Buildings
Today nearly 3,947 Green Building projects are underway in India, buildings which use less water, optimize energy efficiency, manage waste effectively and provide a healthier living. India has been a promoter for sustainable built environment movement and in 2016 Green Building trend has caught up with developers fast.
Décor trends are changed; more startups are looking for space and skyscrapers are coming up in metros. With more professionally managed projects, architecture and engineering; Streamlined rules and regulations; started single window clearance introduced by State government and Municipal Corporations; Indian real estate industry entered a new era in 2016.