Investment opportunities in real estate market post regulatory reforms such as RERA, GST and demonetization
New policies and reforms have kept the investors in check, who are taking a cautious approach for sustenance, especially in fast-developing countries like India. Some of them have been caught off guard, but for some, it was a blessing in disguise.
However, the experts believe that these reforms are likely to create new opportunities for the investors in the longer run. After the implementation of Real Estate Regulatory Act (RERA), Goods and Service Tax (GST) and demonetization, all the realtors and investors are trying to align their activities according to the new structure. The unorganized players have been pushed to the corner, where they will either face liquidation or change their setup.
The wait and watch approach may not have helped them so far, but 2018 is likely to usher in a change for all the players associated with real estate market. With accountability and transparency, affordable housing has already seen a surge in numbers. Backed by the government’s policy of “Houding for all by 2022”, the residential space has gained traction, which bodes well for the investors. On the other hand, commercial markets have also continued to drive investment due to the demand for pre-leased office space encouraged by record leasing activity.
Pre-leased investment grade office and retail space will continue to dominate investments and the overall sentiment also remains positive as investment activities in office and industrial sectors continue to increase. Additionally, the last mile funding for near completion projects continues to be the new trend of the market as developers look to ensure timely project deliveries to avoid penalties according to new law.
Apart from this, the ware-housing sector has also attracted the investors on a large scale. The six ware-houses acquired by Ascend as proves the increased interest in the logistic sector. With the economy adjusting to regulatory restructuring over the past 1.5 years, the market is likely to reflect fair industry indicators.