Impact of GST, RERA, PMAY on the real estate market
The impact of GST, RERA and PMAY on the real estate market has changed the scenario of the property bazaar. Ever since these reforms have been brought into practice, it has definitely increased the sales and invited investors to invest more into the real estate sector.
Earlier, buying a property was considered to be an intimidating task. The process of buying a property was in itself challenging but the tables have turned since the government brought into new laws and reforms in the real estate sector. Government introduced policies like GST, RERA and PMAY for the betterment of the buyers and with a vision to bring transparency and growth in the real estate market.
After these reforms, there has been a considerable growth in the real estate sector, property buyers are having the best time of their life. Not only ready to move but the sale of under construction flats has also increased. The existing market has opened up new horizons for investors and has offered them new investment opportunities in residential real estate.
In 2016, when government announced demonetization, this majorly affected the developers and builder community as the maximum amount of cash transactions were happening in this sector. With the advent of GST, property buyers experienced a pinch in their pocket as they had to pay the GST percentage along with the cost of the property. GST was implied only on under construction properties. In 2019, Government has brought down GST percentage which is a big relief to homebuyers.
RERA was particularly introduced for the smooth and timely completion of projects that are been delayed from the developer’s end due to various reasons. According to RERA, in an under construction property, the developer has to complete the construction in the given timeline. The date of possession of property has to be handed over to the buyer before or on the date he has registered with RERA. This brought transparency and increased the trust factor in the buyers who were earlier hesitant to invest in under construction properties.
The Pradhan Mantri Awas Yojana (PMAY) is another remarkable effort taken by the government with a thought to provide home for every Indian. According to PMAY, every individual who doesn’t own a property of his own can buy one where he is liable to get a certain amount from the government based on the eligibility criteria. The dream of every Indian owning a house is on its way to become reality very soon with PMAY.
Though many feel that the policies introduced by the government have not really brought any major change but in the long run the changes shall be visible and this debate shall still go on.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Propertypistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.