Imperia Structures Reviews the Indian Real Estate Overhaul
If you’re planning to buy a home in the near future, you’re in for some good news. Imperia Structures suggests that by 2018, Indian real estate will be radically transformed into an organized and transparent sector. Adding to its systematic operations will be the lowered prices of residential and commercial properties. This has been possible due to the Centre’s momentous initiatives such as the RERA Act, GST bill, Benami Property Act, and the Pradhan Mantri Awas Yojana (PMAY). The lower strata of the society will soon get attractive housing options on low installments.
Although the Pradhan Mantri Awas Yojana is focused on the poor, it can be used by middle income group as well. The Yojana offers Credit Linked Subsidy Scheme (CLSS) that will increase credit flow for the middle-income group. According to experts from Imperia Structures, PMAY will strive to make 10 million homes by the end of 2018. With Benami Property Act in the loop, the extracted money can be used in PMAY and other development funds.
The RERA Act counters most of the faulty real estate practices. Developers will have to provide RERA with their financial details and legal cases against them. Customers can review this information before they buy a property from a builder. An apartment’s carpet area will be used instead of built-up area to calculate the cost. A late delivery penalty will also be applied to the developers who delay the transfer of their property to the customer. Moreover, builders will be punished if they change the project planning midway.
GST’s effect on the sector will be quite remarkable. Currently, the taxes involved in buying a residential or commercial property can go up to 25% of the cost price. With a single and uniform tax, this can be reduced. Tracking and managing the taxes will be easier with only one tax to care about. Prices of raw materials and other services will fall, which will result in lower input costs to build a residential or commercial property. The lower input cost will significantly lower prices of properties across the nation.
To meet the dream of 45 million rural homes and 25 millions urban residential by 2022, the real estate sector needs to work in sync with the government. Imperia Structures believes this is only possible if there is a high-level transparency. The schemes being implemented by the government will surely bring about that transparency.