2017 has undoubtedly been very eventful for the real estate sector. There have been many reasons for the same. But the most important reasons are the implementation of the Goods and Service Tax ( GST), The real estate regulation act ( RERA) and demonetization drive which left the whole country in surprise. The GST had created a good wave of change in the real estate sector while there are some reports which state the trend in the real estate market.
These trends were correct for 2017 and are going to be for real in 2018.
Affordable housing will be at the center stage:
There is a decrease of 18% during the second quarter of the current year as compared to the last year. Real estate market in Navi Mumbai has been doing well in the affordable housing sales as against other metropolitan cities which have failed miserably. It is said that Navi Mumbai has recorded sales across different price ranges.
For keeping the price levels well within the range of homebuyers the real estate developers in Navi Mumbai, may reduce the size of housing units in a way which would cater to most buyers without compromising many other important aspects of real estate.
Quality of life as a deciding factor:
Despite the price range, the homebuyers do not want to compromise on the factors such as quality of life and liveability factor. The liveability factor is nothing but sufficient space for parking, convenience store, a well-lit campus and parks as the mandatory requirements. When the price range goes above 50 lakhs, the amenities like club house, gym, swimming pool and other facilities are also included which is a great thing for buyers looking out for the quality of life.
Industry under regulation:
With RERA in place, the trust factor among the property buyers has increased, people are more than interested to invest in a destination which will give them returns. Property market in Navi Mumbai especially sub urban area such as Ulwe is making news due to the returns that it offers. Being amidst the development of the Navi Mumbai International airport, Ulwe is the most preferred destination offering better returns to the property buyer. RERA has reinforced the trust among property buyers with necessary regulation. Despite GST implementation, the tax benefit with GST is something to look forward to. Initially, there would be hesitation in the market due to GST slab, but slowly it would surpass, and the income tax benefit would be emphasized more.
These trends are to stay for 2018. The demonetization drive across the country was a game changer in real estate market. The budget for the year 2018 also did not deliver much as expected, so the real estate market is low on buying sentiment. Let us hope that we see a better 2018.
Finance Minister Arun Jaitley presented the 2018-2019 budget on Thursday. This budget was majorly focussed on farmers and agriculture. But there is a lot to cheer about in real estate sector too. This budget seems balanced with a focus on affordable housing. But the real estate experts also say that there this budget of 2018 will not impact the real estate sector directly as there were expectations of concessional GST from the budget and it was not met. As for real estate market in Navi Mumbai goes, the sector is continuing a good run due to better developments in the area. The budget does not ease out the issues of people willing to buy property in Navi Mumbai.
Here are some highlights from the real estate sector
- The budget looks biased towards agriculture health and education. The real estate was not spoken in the budget as much as it was expected. There was a massive disappointment as concessional GST, stamp duty regularization or change in the capital gain window on REIT did not get covered. There were no changes in income tax slabs too.
- The goal of the government which attributes to housing for all by 2022, the government is planning to build one crore houses under Pradhan Mantri Awas Yojana. There would be a dedicated housing fund under the NHB for priority sector lending.
- There would be a standard deduction to the salaried group of people which has come as a breather to the buyers. This would undoubtedly help better real estate investment. Digitized transactions are one more aspect which would provide more transparency in the Indian Real Estate Industry. It will bring in fair play for real estate sector players who look forward to being organized and also will curb frauds.
- The demand for real estate will escalate as there would be a facility of ease of credit for affordable homes. The housing sector will see a better future with the most coveted Smart City initiative which is a step in the right direction.
- Buyers and sellers of the property have tax relief as the property will be valued up to 5% below the circle rates. This is for
calculation of stamp duty and capital gains tax.
- Most of the real estate expert says that this move will bridge the gap between circle rates and market rates.
Overall, it was not a significant budget for real estate sector which is seeking industry status for a long. Still, there are some small but efficient changes which may create a positive vibe among the investors. We look forward to the year ahead with a lot of expectations.
Navi Mumbai real estate has been on a high since last some years. Different policy changes have triggered the settlement in the market which has brought in the paradigm shift in the buyer’s perspective. Here is a guide to buyer’s perspective on the real estate in Navi Mumbai.
Decision making points :
Development of Navi Mumbai airport is the point of importance while choosing the property locations in Navi Mumbai. Settlement of prices is also one paramount point which buyers may look at in the coming year although there has been only marginal settlement.
Policy Changes :
Real Estate Regulatory Act has been a check in the real estate industry’s business practices, which has brought in a lot of trust from investors. GST, a single window tax system has been a game changer in buyer’s sentiment. The property buying sentiment is positive and in the year 2018, there would a be a surge in property buyouts. Many buyers are yet to be well acquainted with the guidelines of RERA and GST, the awareness of both of these game-changing policies will create a level playing field.
Myriad options :
There are numerous projects in Kharghar which can be thought after for buying. Kharghar has been developed keeping the Navi Mumbai airport in view. It has some of the best projects in Navi Mumbai. Among the other popular locations, Ulwe has been the upcoming locations regarding real estate. People prefer buying flats in Ulwe as it is the most upcoming real estate market in Navi Mumbai.
Connectivity of Ulwe and Kharghar is good with the rest of the Navi Mumbai with many good schools and hospitals, Ulwe has been the prime real estate spot for the last year and continues to attract the traction for buyers interested in affordable property buying segment. With RERA and GST in place, buyers are looking at a property which is value for money.
Physical Infrastructure :
Navi Mumbai has impeccable infrastructure which focuses on water supply.
Navi Mumbai also receives good amount of rainfall and CIDCO has made sure that the disposal of rainwater is taken care of. A very effective storm water drain management system is designed to prevent flooding.
A property buyer while buying any property would look forward to a value for money preposition, Navi Mumbai is and will be the most preferred destination for real estate in the next coming years for sure.
RERA, as it is commonly known as, is the Real Estate Act 2016 and one of the prime reasons which are leading Navi Mumbai to be the next Real Estate hub. This enactment by the Indian Parliament is mainly aimed at protecting the interests of the home buyers by bringing in the crucial element of transparency in the Real Estate transactions.In turn, this is further expected to boost the investments made in the Real Estate Sector. Under this Act, all the developers have to register all their Real Estate Projects ( More than 500 Sq. Meters or More than eight apartments) with their respective state’s RERA.With this Act, a regulatory authority has been established in India for the Real Estate Sector which is a move long awaited.
Given the nature of Mumbai and the ever-increasing population of Mumbai, a flats in Navi Mumbai is the most desirable one for all MumbaiKars. Navi Mumbai, with its clean and green environment, has always attracted more dwellers than Mumbai. The area has better connectivity, infrastructure and thus calls for a second home for many. Navi Mumbai is a well-planned rapidly developing modern metropolis. Ulwe property rates are affordable to everyone and looking at the development it will be the preferred residential
Property in Navi Mumbai are sought after, given the above-mentioned reasons and more. The real estate sector in India was infamous for its notorious non-transparent nature. This made people, and home-buyers think million times before leaping into the deal. It is observed that a few years ago, the builders and developers followed a trend! Home-buyers had to pay the 30-40% of the total property price in the form of cash. A tradition of seeking cash component would turn the heads off of the regular middle class and upper middle-class buyer.RERA is indeed a pro-consumer Act. With this Act, the informed home-buyer insists on cheque payment and also demands to record all the transactions thus made.
All this and more has given an impetus to the already developing city of Navi Mumbai. Then let it be Vashi or Ulwe; RERA has given those wings to the aspirations of a common man.
The main highlights of the Act include
- The compulsory registration of the project with the Maharashtra State RERA.
- The provision of Reserve Accounts so that the funds collected for a new project can’t be re-routed to the other one. Thus, 70% of all the receivables of a project need to be parked under a specially meant Reserve Account.
- The promoters need to disclose the progress of the project to RERA continuously. This will enable the home-buyers to monitor the project at a click of a button.
- Title representation and standardization of sales agreement.
- Penalty: – The violators of the Act will be penalized strictly up to 10% of the project cost and have to undergo imprisonment.
Why wait? With RERA, there are a million reasons to be a proud Navi Mumbaikar!