Peninsula Land Limited has forayed into the affordable housing segment with the launch of its new project `addressOne` located at Gahunje, Pune. Spread across 50 acres, addressOne is strategically located on the Mumbai-Pune expressway on the Pune side, next to the MCA cricket stadium.
Those who know Puravankara family are not surprised. After all, he grew up in a home where every dinner discussion was about business and opportunities, which would invariably veer towards brick, mortar and realty. He was mentored by a passionate and focused visionary father whose passion and perseverance made Ashish understand what it takes to build vibrant communities and enriching lives by offering families their dream of buying a home.
I am also conscious of the fact that a large number of developers are hoping against the hope that once the tide is over and investors return to the market their ordeal would be over. I may sound to be disappointing gentlemen but the era of investor driven real estate business is over.
The Consumer Confidence Report 20:20 finds that the developers who have been focused on the buyers with quality projects and meaningful dialogue have been rated higher by the consumers at a pan-India level.
A friendly budget is always on the wish list of everyone. Across the industries the stakeholders, including the consumers, have more or less the same expectations with the Finance Minister to call it a friendly budget. But in the context of the Indian real estate a friendly budget for the sector does not necessarily mean a homebuyer friendly budget.
The more liberalized FDI regime now further attracting global capital flow to Indian real estate sector. The Goods and Services Tax (GST) system will also have a major impact especially in sell to build model in Real Estate. And the Benami Property Act will surely curb the parking of black money in real estate.
The first quarter of the year 2017 started with demonetization, a bold move undertaken by the government which was directed towards enhancing the liability of all the transactions and to make everyone and everything in the realty market accountable.
It is the lack of proper disclosure that often results in litigations. Across the world, disclosure laws vary from state to state, even down to the city and local governance level. Though disclosure norms are very poor in India, the developers who conceal relevant information about the housing project can still be taken to courts for failure to disclose.
The slowdown was predicted much ahead to the introduction of GST and RERA and we were prepared for it. Whenever there is a new law or regulation, changes are bound to impact any market and we must cautiously tread the transition phase. At the same time, the impact usually does not last long as people adapt to changes quickly. We continue to see good traction in our business despite these market challenges. Our business is based on certain core values, which we amplify to face tough challenges.
It is true that the GST burden is today a huge deterrent in the housing market and a large share of homebuyers are now waiting for the project to be ready as the ready to move apartment won’t attract GST burden. The problem, however, is with millions of buyers who are in the mid cycle of construction and the GST has suddenly added to their already over stretched budget in the housing market.