While celebrating the glorious 72 years of Independence we must not forget the long way that the Indian real estate sector has covered. The not so organized property market has seen various ups and down in all these years and this blog post takes you through the journey of the milestones that the realty sector has achieved till now.
Emergence of Indian Real Estate
Initially, citizens were not familiar with the term real estate but the development of cities, urbanization, IT revolution and migration of people to urban areas in search of jobs and livelihood led to the evolution of Indian real estate sector.
Development Timeline of Indian Real Estate
- 1952-1960 – The declaration of Chandigarh and Gandhinagar as the capital cities, marked this tenure as a rare instance of planning new cities in India
- 1960 – This period witnessed the incorporation of the town planning and development plans under the Maharashtra Regional and Town Planning Act, 1966 while the guidelines were issued for district planning in 1969.
- 1970 – The Government introduced the proposal to formulate NHB’s i.e. the National Housing bank to strengthen the residential property market.
- 1991 – This period marked the creation of job opportunities as various multi-national companies ventured into the Indian Real estate. All this also mark the liberalization of the Indian economy.
- 1994-1999 – The Indian real estate witnessed boom as NRIs started investing in the country. But, the sector experienced a downfall in business due to various reasons that made NRIs uninterested in the property market here.
- Post 2000 – The introduction of shopping mall and retail business culture in the Indian real estate sector allow the market to record an increase in business.
- 2016 – Introduction of Smart City Mission and Pradhan Mantri Aawas Yojna with the aim to offer Housing for All by 2022.
- 2017 – Formulation of RERA [Real Estate Regulation Act] and GST i.e. the Goods and Service Tax to bring transparency in the Indian Real Estate Sector.
- 2018 – Supreme Court’s decision to acknowledge homebuyers as creditors is a big relaxation to the prospects suffering to get the possession of unit.
- 2019– Introduction of Real Estate Investment Trust [REITs]
Reforms and Indian Real Estate
After being an unorganized sector for a long time the Union Government led by PM Narendra Modi introduced several reforms to make the working of this sector transparent. RERA i.e. the Real Estate Regulation Authority come into existence in 2016 and empowered the homebuyers to raise voice against the delay in project possession and various other issues. This Act also tightens the noose of errant developers because of whom the homebuyers have to suffer.
The rigidness to get themselves registered under the RERA Act makes the developers accountable and the agents also cannot promote the projects without getting a registration number from the RERA authority. All these features of the RERA law make the seller responsible to deliver what they have promised to the homebuyers and for which the prospect has invested the hard-earned money.
GST i.e. the Goods and Service Tax is another reform introduced by the Modi-led Union Government and this also has a positive reflection on the Indian real estate sector as all including the developers, agents and the homebuyers are in a win-win situation.
Also Read : Advantages of Buying RERA Registered Projects