GST and RERA Impact on Housing industry

RERA has been set to change the paradigm of real estate industry. With the new alterations in the Regulation Act has in fact benefitted the real estate consumers beneficially. Along with it, the addition of GST has benefitted the Indian real estate market exponentially. With the hype and long-awaited modifications in act, budget homes and affordable housing will see rise of demand. Although the hype and news might seem complicated, the Act is pretty straight and convenient to understand. With the addition of GST link up in the current trend, budget homes are bound to take over the real estate market. Maha RERA has created a fright amongst many top builders in Pune.

Apart from budget home consumers, GST has set to ease the norms over the builders. With back-to-back duration of RERA and GST, the most common 1 & 2 BHK homes have eased on their land prices. Therefore, the center chooses to relax the land pricing and thus boost the market of budget homes. Apart from Pune, the prime locations of PCMC like Moshi, Chikhali and Dudulgaon have seen a drastic drop in pricing of apartment lands. The basic impact of GST and RERA has effectively neutralized the taxes in real estate sector. The following has been altered to release the dump of unwanted pile-on in the supply inventory of residential sector.

Following are the basic RERA rules that everybody will benefit from:

Developers have to incur own construction cost from laying the foundation to up to three floors.

Any change in layout plan in any of the buildings should be conveyed and approved from the customers. Therefore, if you need to change the plan of 1 BHK to 2 BHK, the customers will have the right to approve or disapprove over the same.

Whatever needs to be delivered, should be strictly mentioned in the agreement. Therefore, even the minor things that the developers or builders may feel is negligible cannot be ignored in the agreement.

Although most of the rules and regulations are favored for the consumers and affordable housing customers is what RERA has defined itself as, the boon and benefit for the developers and builders is the GST. With a right treatment and relaxation of tax proportion, the builders can effectively make good bargains in budget home projects.

Till date, many builders have invested their profile in budget homes, however, the supply and more misfortune acts in real estate have still slowed down the pace for them. The RERA and GST impact aims to change the paradigm of affordable housing and real estate sector of Pune, Maharashtra and as a whole nationally. With this whole new perspective, real estate sector will see the best practices that are necessary for the consumers. The rise of this sector will in fact edge a new horizon of Indian economy as well. Therefore, although PCMC has always marked a developed twin city of Pune, with these new norms there will be more convenient and beneficial growth and satisfaction for both parties; the customers as well as the developers and the builders.

Aksha Group | Optimist