The real estate market was largely affected by demonetization in the last quarter of 2016. Since then the conditions have not been that good and both the buyers as well as the builders are struggling hard to bring in stability into the sector. First it was the demonetization that hit the industry hard and now it is the GST which is sure to make an impact on the real estate. Till now there has been no clarity from the government’s end on the taxes and therefore there are a lot of rumours going around.
Recently the quarterly survey for sentiment index was performed and t was clear that the score would be somewhere around 53. This is quite a decent one and the score for Q4 in 2016 was just 41 which is the least score in the last 3 years. Demonetization definitely came as a setback for the real estate as it shook the market and everything came to an end. But now the stakeholders, investors, builders etc all are trying to combat the situations and things are improving. The first quarter of 2017 has so far been good and it is expected to go up as months go by.
For now the biggest problem before the real estate market is the upcoming GST which is yet again a different reform to be introduced by the government. Under this reform the tax rates will be same throughout the country thus maintaining the desired transparency. The investors and developers are eagerly waiting to get some confirmation from the government as GST will definitely make a big influence on the market.
Some time back government came up with RERA and now it is time for GST. The market has not been able to cope with the various reforms due to which the sales is going down. It is because of so many changes taking place in the real estate that it has made it difficult for the buyers to come in and show interest. That is why no new projects have been initiated as developers just want to wait and see as how GST would make a difference.
As nothing is said by the government on GST, the real estate professionals are not sure of what difference GST would have or how the conditions will be. Already market is slow with many projects been delayed and the sales being low. For now GST is the policy that can bring some hope for the real estate to boost.