Winds Of Change: Remarkable Alterations In India's Real Estate Space

The period between 2014 and 2017 will find a special mention each time someone sits and writes about India's mighty real estate sector and the many changes it has witnessed over the years. While landmark reformatory legislations that are expected to cleanse the sector of all its evils were passed during this period, the about four-year journey has been quite tumultuous.  Amid a slowdown that crippled the sector, every stakeholder felt the pain. While developers found it extremely hard to sell their projects, buyers felt property was going way out of their reach. The cascading effect was felt on the country's gross domestic product that caused a lot of worry to authorities, too — as a result of which, a slew of measures were announced as corrective measures. After all, we are talking about a sector that is the second-biggest employer in the country. However, the sector started recuperating despite a major blow that came in the form of demonetisation.

According to a PropTiger DataLabs report for the March quarter, new launches and home sales number both grew 19 per cent on a quarter-on-quarter basis.  

The chaos and confusion are, however, far from over as developers prepare themselves to face a new regulatory regime — the Real Estate (Regulation & Development) Act, 2016, came into force on May 1 — and a new tax regime — the Goods and Services Tax comes into effect on July 1. However, that is not all that is keeping sector stakeholders on their toes. That the sector would never be the same, at least for those who took things for granted, is evident from several other steps many development and civic bodies have taken recently.

Taking them down

While property markets of major cities took a hit, prices have constantly been on the rise in state capitals, with Uttar Pradesh's Lucknow leading the pack. Owing to that, illegal constructions mushroomed across the city and cases of property-related frauds swelled. To handle that, the Lucknow Development Authority (LDA) recently decided to name and shame engineers who willfully did not blow the whistle despite being in the know of illegal activities. To set an example, the LDA also recently razed four unauthorised buildings and sealed about 17 structures. Among the felled structures are buildings at posh areas such as Gomtinagar and Hussainganj.The move might have come late, but it is a welcome move nevertheless.

Similarly, the Pune Metropolitan Regional Development Authority is set to crack the whip on illegal constructions. The authority has listed 1,650 structures that cannot be regularised and are likely to come down soon.

Must Read: Confessions Of An Indian Real Estate Buyer

The Vadodara Municipal Corporation (VMC) will also be razing 1,841 illegal homes at Sanjaynagar in Warasiya. This is the biggest demolition drive carried out by the municipal body in the recent times, media reports say. In November 2014, the VMC had demolished 1,900 houses at Kalyannagar, Fatehgunj.

Strict supervision

According to media reports, the Noida Authority will appoint a private agency to monitor the progress of real estate projects. This is done to ensure developers stick to the deadline within which they have promised to deliver projects to homebuyers. Earlier, a delegation of homebuyers from the region met Chief Minister Yogi Adityanath and demanded strict action against defaulting developers. The CM had directed authorities in Noida and Greater Noida to address the concerns of these homebuyers on a priority basis.

Apart from its plans to hire a private supervisor to monitor housing projects, the Noida Authority has also tried the name-and-shame method to yield expected results. Last week, the Noida Authority uploaded the names of developers who owe it Rs 9,993 crore on its website.

“We have uploaded the complete details of all 91 builders... This will not only ensure the welfare of the homebuyers but also protect the interests of prospective buyers. The new buyers will get know that will not issue completion and occupancy certificates to defaulters... Making the list public will also put moral pressure on the builders to complete projects and pay their outstanding dues to us,” Noida Authority Chief Executive Officer Amit Mohan Prasad told The Times of India.

Happy to help

You will not have to hop different offices to pay your property tax or if you want to seek information for switching to the unit areas assessment method in Kolkata. The Kolkata Municipal Corporation has directed all assessment department officials to attend every citizen, irrespective of their jurisdiction. You will be welcome at every counter.