The recent demonetization drive has definitely helped the government score well on regulations and transparency. We have taken a holistic view of the continued political will towards reforms in the real estate sector - and the very real challenges the government faces. "Improved transparency will drive increased participation by institutional investors in India. With strong linkages between regulations, transparency and real estate, we assign it a high weightage," COO - Business & International Director, JLL India.
The most imminent change that will impact the sector in the years to come is the implementation of RERA that will increase transparency, which in turn will bring back homebuyers' confidence. The real benefits would be that the buyer will be ensured of a dedicated governing body, timely project completion, complete information on the project and amenities promised.
The reforms such as RERA, demonetization and steps to improve ease of doing business have ushered in higher transparency while discouraging parallel economy. This will prompt developers to focus on completing their projects in a time bound manner thereby increasing customer confidence," said Rubi Arya, Executive Vice Chairman, Milestone Capital Advisors.
According to her, as the property sector has been subdued for some time now, it offers for institutional investors an opportunity with better pricing and falling interest rates. The long term fundamentals are also looking intact due increased transparency and governance thereby providing attractive returns on investments in real estate as an asset class.
Realty developers agree that they will have to adjust to the new environment and more specifically, modify their business model whilst adhering to stricter compliance norms. However, they are also hopeful that in the long term all of these factors will help strengthening the sector.