The government acknowledges the contribution and the necessity of the real estate sector. The real estate has initiated various steps to protect the interest of the buyers and to revive in the industry as well. There exist many real estate sites like MypropertyBoutique where they provide flats, apartments, villas and many more according to the budget of the buyer. In recent days, most of the strategies are aimed at reducing the supply pressure in order to support the objective of the government.
Implementation of terms and policies:
The Union Budget has particularly started focusing on the affordable housing segment that comes under the real estate. It is expected that the Budget 2020 to introduce new tax policies and terms that will lead to an increase in sales of residential properties. Hence the process has been carried out by decreasing the tax of 1.5lakh for the interest which is paid on housing loans on affordable housing properties. The centre has also taken measures to reduce the demand-supply gap by making the lands available to the affordable housing sector. This is implemented in order to avoid the trouble which is undergoing for the past few years in the real estate. It is found that the developers have lack of transparency and there are many unfair practices to the consumers and to rectify some of the issues, the centre has implemented much-needed policies in order to make the sector more consumer-friendly. This includes the implementation of Goods and Service Tax which is termed as GST in common Amendment to black money bill, Real Estate Regulation and Development Act, and many more laws for the welfare of people.
Introduction of distress fund:
The initiatives didn't give a hit initially because there was no confident among the buyers. This highly leads to the fall in residential demand among the people. On the other side, the developers were pressurized as they couldn't increase the price of the property and the level of the unsold property rose to 6.5lakh. That is, the survey has confirmed that there exist many incomplete projects and the buyers are still waiting for the completion of the project and to possess them. In order to resolve the issue, the government has taken some steps like introducing the announcement of Rs 25000crore distress fund. It is believed that it would help developers to complete the unfinished projects.
Decisions to opt:
· Policies should be implemented on rental housing also as the people will get to have tax benefits.
· The concept of co-living should be encouraged because of the demand in rent and the growth in popularity as well.
· Homes under Rs 45lakh comes under affordable houses. Unfortunately, people who buy properties from metro tier-1 and tier-2 cities cannot avail the benefit. This could also considerably lower the growth of the segment. Hence if the government takes certain measures to reduce the price range, there will a positive impact on the real estate sector.
Hence, by undergoing all the above reforms in a proper way, we could expect an increase in residential sales.