We spoke to some industry leaders to find out what their view is for Real Estate in 2018. As part of the same, here’s what Mr Viswa Prathap Desu, Senior Vice President at Brigade had to say
The year 2017 has been an eventful year for the real estate industry in India. It saw the advent of GST in lieu of VAT and ST thus creating a temporary ruffle in the business but promising to result in a lower cost for the consumer. We then had the RERA Act being implemented across most of the states. The RERA has been brought in to ensure greater transparency for the end consumer. RERA also created a temporary respite in sales as developers were recouping and customers were waiting for things to settle down. So, as the “dust settles down”, We see the customers coming back in droves.
As always, took up the leadership position by extending special prices to new customers coming on board post GST. It’s running a special campaign to provide the confidence to customers who were hesitant in investing into a new home. The trust of a big brand like Brigade which stands for “Building Positive Experiences” definitely gives the customer the much needed comfort.
The Year 2018 will be a year with a positive outlook. We expect the real estate prices to start showing a slow but steady increase in the rates. Prices in 2017 have been stable, but now with increased costs(due to implications of RERA etc) and in general increase in the offtake would reflect in prices going up. Quite a few developers including Brigade Group are planning to launch new projects. The current trend of customers to invest in ready possession apartments is ensuring the inventory coming down. This will ensure we get new inventory in the market. RERA regulates it and hence instil confidence in the customer.
In 2018, we also expect the Pradhan Mantri Avas Yojna Credit subsidy scheme to get publicised more by the Financial Institutions and developers. This will help the first time buyer to aspire for a bigger home and with a lesser burden.
To sum up, we hope to have a much brighter 2018. We hope to have a lot of action and revival of the real estate industry.