Can RERA and GST help real estate in India?

Real estate in India has not been performing the way it ought to for the last few years. It has been a period of lows from which it has not been able to recover from. The pricing could be a main culprit in the downfall being experienced by this entity. Real estate prices in the country have been over inflated. When properties have become so unaffordable, how can one expect buyers to even think about owning a property? These days potential home owners hardly get converted into actual home owners. Why is that you might wonder? This is because the present pricing patterns are not in the favour of the consumers. That is to say that the market has not been a buyer’s market but a seller’s market. If the market conditions which are presently prevalent continue to remain so, then it is a worrying thing for the realty sector. Another factor that is affecting realty growth are the endless construction delays. The industry has gotten a very bad reputation in this regard. It has become a norm rather than an exception which is a sad state of affairs. The construction and real estate industries are laying the blame on the government and its policies for these delays. They say that the number of approvals required for the construction of a project and the bureaucratic red tape around them is what’s causing the delay in the handover of villas for sale in bangalore and other parts of the country. So how to address the problems faced by the industry and the consumers. How can houses for sale in Bengaluru and other parts of the country become cheaper? How can villas for sale in Bengaluru be handed over to the buyer on time? The industry is looking towards two governmental policies which might set it on course of growth. rnThe biggest legislation that has come into effect to monitor the on goings of the real estate sector is the Real Estate Regulatory Act 2016 (RERA). This law will govern almost all aspects of the real estate sector and hold all the stakeholders accountable for what’s happening to the sector. Delays in handover and money flow problems have been addressed through this legislation. Never again can this sector be accused of being an unregulated. Consumers and builders will be held accountable for their actions. The RERA has not been implemented completely yet. But when it does houses for sale in Bengaluru would not be a hassle to purchase.rnAs far as the pricing is concerned, many are predicting that there is a price correction in the offing. They might not be wrong considering that the prices are the way they are at the moment. Another factor that could influence real estate prices is the Goods and Services Tax. It is expected that real estate prices might drop after this tax comes into effect. The tax slabs for realty have not been decided yet but there is hope that the industry will benefit.