Year 2014 brought a bag of mixed feelings for the Indian Real Estate Industry. Though the first half was rather slow, second half of the year was fast enough to make up for it. After the Union Budget was announced in the beginning of financial year 2014-15, a wave of positivity was seen in the real estate market.
Affordable housing was given the top priority status. As a result, the state government authorities started launching affordable housing projects in their respective areas. HUDA in Gurgaon and DDA in Delhi came up with numerous flats for the Economically Weaker Sections (EWS), Lower Income Group (LIG) and Middle Income Group (MIG). Private builders also launched affordable projects in different parts of the country to support the government’s initiative.
Infrastructure sector was also given the much needed push. Considerable amount of funds were allocated to state roads, National Highways and rural road developments. Metro connectivity in different cities and extension of existing metro lines to the adjacent areas has also been planned. The plan to transform 100 cities into smart cities was also a major step taken by the government to help reduce the burden on existing metro cities.
One of the most talked about topics of the last year’s budget were the Real Estate Investment Trusts (REITs). SEBI announced that it would list the REITs on its stock exchange. The matter was even more emphasized in the Union Budget 2015 by rationalizing capital gains tax for the sponsors of REITs and allowing pass through of taxes on rental income.
The coming of a stable government marked the revival of the real estate industry in the second half of 2014. The real effect of the policies will be gradually seen in this year. The multinational companies, that were averse about putting their money in the Indian market, are now planning to enter the market. The continuous increase in the number of IT/ITES companies will create more job opportunities thus giving a push to the housing demand in the country. It looks like the times have come when the real estate progress wheels would start spinning again.