In 2016, real estate sector rode many ups and downs

The real estate sector, which has been a major contributor to India’s economic growth, has seen many ups and downs in 2016.

Beginning with the Smart Cities Project by the government, which has many cities vying for the smart city tag. The Seventh Pay Commission’s decision really helped in higher spending across sectors, benefitting the realty sector. A good monsoon in the country has led to the rural economy picking up, as also the demand.

Brigade Enterprises Residential CEO Om Ahuja said, “The overall economic growth trend reflected in demand pick-up in commercial, retail and residential. Bengaluru capital values rose by an average 7%, against the country witnessing negative growth.”

 CREDAI Bengaluru Secretary Suresh Hari said, “The change maker Bill of  Real Estate (Regulation and Development) Bill 2016 will take the industry to a new level. Apart from regulating the industry, it enables customers to have more equitable participation in the development of dwellings of their choice. While the bill addresses the essential need of the consumer, it falters to involve all stakeholders into the ambit of the Act.”

“Commercial office demand in Bengaluru was at its best in 2016 with approximately 13 million sq feet of leasing. Bengaluru has the lowest vacancy level, when it comes to office space and it’s the best in the country. This reflects positive business confidence in the city by business houses and multinationals... India has only two such cities witnessing such large leasing volumes,” Ahuja added.

However, on the downside Ahuja said, “No major thrust on urban transport development and no clear national policy and central support to make public transport to decongest traffic in cities.”

Hari said, “The industry demand of uniform real estate tax across county is long-pending. Title registration charges and duty varies from state to state and the need to reduce this burden is not achieved. Title Assurance if established with collected duty and charges, it will be a big support to consumers and will enable the industry to scale up to the national mission.”