(MENAFN - Khaleej Times) The Indian real estate sector was in a state of flux after the recent spate of reforms undertaken by the central government. However, home buyers and investors are now in a win-win situation after clarity has emerged on the impact of reforms such as demonetisation, the Goods and Services Tax (GST) and the implementation of the Real Estate (Regulation and Development) Act (Rera). It has resulted in transparency and confidence among all stakeholders.
It is now an opportune time for non-resident Indians (NRIs) in the UAE to consider buying their first property back home or expand their portfolio. Consider visiting the Indian Property Show which has partnered with the Confederation of Real Estate Developers' Associations of India (Credai), the apex body of private real estate developers. The exhibition will be held on December 7, 8 and 9 at the Dubai World Trade Centre. Entry is free.
Industry executives claim real estate in India is neither in limbo nor facing a slowdown.
"Reports indicate that prices in the residential real estate market appreciated by more than 10 per cent only for the period ending June 2017. Markets like Mumbai, Pune and Bengaluru enjoyed appreciation in prices of around 15 per cent over the last one year. There is good news from smaller towns as well. Kochi is witnessing appreciation of more than 25 per cent annually," observes Jaxay Shah, president of Credai National.
The exhibition is expected to attract 18,000 potential buyers and over 200 Rera-approved developers, of which 80 are from South India. The show is segregated into 14 state and city pavilions and will also promote Tier 2 and 3 cities. Some of the cities in focus are Mumbai, Pune, Chennai, Coimbatore, Hyderabad, Bengaluru, Mangalore, Delhi, Noida, Gurgaon, Kolkata and Kochi among others.
It is one of the biggest international exhibitions on Indian property after the implementation of Rera and properties starting from Rs1.5 million and above will be showcased. There will also be a consumer grievance redressal forum available at the show.
"Recent reforms are aimed at not only enhancing transparency and credibility but also strengthening trust of home buyers and investors in the real estate sector. According to a recent report by JLL, 2017 has witnessed the highest sales in seven years in Mumbai, besides six per cent gain in sales in the rest of the cities last quarter, showing that growth is much stronger in markets consisting of established, credible players," says Prashant Bindal, chief sales officer, Lodha Group.
According to Shub Ganguly, senior VP, sales, Prestige Group: "The guidelines of Rera 2016 empower property buyers, while enhancing financial discipline, governance and transparency among real estate players. GST was implemented to iron out multiple tax rates among different states and usher in a uniform tax structure for the entire nation. This brings clarity to both real estate players and consumers. Going forward, factors like rapid urbanisation, increased migration to cosmopolitan and Tier 1 cities and the government's focus on infrastructure and affordable housing will give the required impetus and push to the real estate sector."
Indian property offers the benefit of good capital appreciation. Indian real estate offers more than 20 per cent return. The long-term appreciation of property in India is among the highest in the world.
"This is the best time to buy real estate in India sitting here in Dubai. Prices of real estate are determined by land cost and construction cost. Land values, especially in metros, are unlikely to see any downward revision. Similarly, construction costs have never seen a downward revision historically. Therefore, we should not expect prices at this time to face reduction from developers. However, developers do offer a bouquet of property from which one can pick up a unit which is within our budget and matches our preferences with regard to location and amenities," suggests Credai's Shah.
After the implementation of Rera, consumers are now looking up to organised brands as it gives them an assurance of quality product and timely delivery. They have also helped infuse positive sentiment in the market and introduce bargains for homebuyers.
"Even in tough times, the demand for both affordable and luxury homes continued to thrive as buyers are always on the look-out for good quality product backed by established and credible developers," says Lodha Group's Bindal.
In the wake of Rera, small or unorganised developers have realised that property development is not everybody's game. "Many of them want to leave the development business to serious and organised property developers. With Rera, all due approvals are to be secured before project launch and it has to be delivered on time even if is not sold out completely," says an Adani Realty spokesperson.
After identifying a potential property within their budget, buyers should look into a developer's background, projects delivered and feedback from existing customers. A buyer must understand his rights on delay of construction apart from verifying basic legal documents and necessary permission from local government bodies. "A project can be registered under Rera only if the land is available and the plan has received sanction from the competent authority," assures Credai's Shah.
Deepthi Nair I cover all things related to real estate in the UAE. Working as a print journalist in Dubai since 2008, I have reported on all the flashy new projects in town. Dubai's passion for setting new records continues to amaze me. I love to do stories that strike a chord with the average expatriate in the UAE. If you have any news related to your community or rents, you know who to get in touch with at Khaleej Times. When I am not working, I travel, catch up with friends, mall trawl, catch up on movies, explore new places in town or just unwind in a spa. Originally from India, I have been a journalist for more than 11 years. Language has been my forte right from school. That's me in a nutshell