India is celebrating its 70th Independence Day on 15th August this year. A lot has changed in the past 70 years since India became free from foreign rule. A look around us and we can find a number of sky-touching buildings, multi-story apartments, world-class malls, and many more wonders that were just a dream seven decades back. The real estate scenario of India has certainly witnessed a huge transformation in the past seventy years. The initiatives taken by the government have been a driving force in this positive shift of real estate India. The government not only brought new sector-specific policies for the betterment of the nation’s real estate but also tweaked the existing ones to suit the contemporary needs of the people. The Indian real estate is, moreover, in its transitional phase, where it is developing from being an organized sector to a more organized one.
That said; let’s have a look at some of the major factors that are driving Indian real estate towards a more developed, organized, and consumer-favoring market.
Real Estate (Regulations and Development) Act
The Real Estate (Regulations and Development) Act aka RERA is a revolutionary act that would put the homebuyers in the driving seat. RERA was enforced in India on 1st May 2017 and has been one of the biggest steps taken by the government to provide relief to the aggrieved homebuyers and empower them against the unscrupulous builders and developers. This act gives immense freedom to the homebuyers who would now be able to keep an eye on the status of the project they invest in, and the details of the builder. They can also file a complaint against the fraudulent acts of the builder easily under the state real estate authority.
The builders who delay a project or leave it midway or invest the money of one project in another would be punished by the RERA authority and would have to pay fine to the homebuyers. This is definitely one of the biggest sighs of relief for the homebuyers who were scared of investing in projects because of delays and unexpected cancellations.
Housing For All By 2022
The Pradhan Mantri Awas Yojana was launched by the Prime Minister of India, Mr. Narendra Modi, in June 2015 to alleviate the poverty of India and provide affordable housing for every citizen of India. He envisaged a vision of “Housing For All By 2022” that seems kind of utopian in the real world where India has more than 75 million homeless people. A whopping sum of INR 439.22 billion has been approved by the government to build as many as 6,83,724 houses for the urban poor of the country. In order to fulfill this vision of “Housing For All By 2022”, the government has taken many steps like promoted affordable housing for the weaker section of the society through loan interest rebate, slum rehabilitation, and other subsidies for various type of house construction and enhancement.
Reduced Housing Loan Interest
A big relief came for the homebuyers under the Pradhan Mantri Awas Yojana, when PM Narendra Modi announced a rebate on the interest rate. There would be a subsidy of 4% for the homebuyers taking a loan of up to INR 9 lakhs and a subsidy of 3% on the interest rate for those who seek a loan for up to INR 12 lakhs. A 3% subvention would also be given to those who are seeking a loan of INR 3 lakhs for any type of house extension or renovation. This reduction in the housing interest rate would allow the urban poor and the people of the LIG, MIG and EWS group to get a roof over their head.
India has certainly taken a positive shift in terms of real estate since its independence seven decades back. With so many schemes offering convenient housing facility and making real estate a more transparent market, the Indian real estate would certainly become a more organized sector in the coming years.