Impact of Modi Win in Indian Elections 2019 on Indian Real Estate
In Loksabha election 2019, Modi govt. came into action by winning the polls by its own majority. In the last five years, Modi Government-regulated RERA (Real Estate Regulatory Agency) to solve the house buyers problems in India. RERA is a body that really protects property related interest rates of home buyers and put a boundation on builders if they exploit a property buyer as well. The real Estate market is gaining its stability again as such it get some fluctuations in the past 5 years of govt. Today Modi govt. again planning to reforms in infrastructure development of urban areas as well as rural areas both.
Most investors lost their attention in the real estate market when Modi govt. launched the GST scheme because it impacted negatively to property developers as input tax credit devalued their invested assets to get higher returns. Modi government also launched REIT (Real Estate Investment Trust) for the profitability of both the investors and buyers. Now we are confident to get 10 billion dollars in institutional investments which is doubled to its last year. Also, Indian real estate market is getting foreign currency investments too to make it stronger for economical growth. Read more to know about impact of Modi win on real estate.
Government Initiatives to boost real estate in 2019
Housing for all by 2022
Indian government just need to reform the housing plan for all to reach its target and to give profitability to those who seek to invest in the real estate market. Under “housing for all 2022” scheme Indian govt. is more focused on developing more than 12 lacs houses for house seeking people. Modi government is highly targeting both rural and urban areas under the affordable housing scheme this year 2019. His government is on a mission to increase overall sales of such houses fulfilling the lifestyle needs of people, giving them infrastructure for children’s amusements and personal growth.
Faster Clearances of project to benefit the investors
The real Estate market is the smarter choice among the investors who have already decided to dive into it. Most of the investors wish for higher returns from the real estate market but only the obstacle is pending approvals for a specific project causing a long delay likely to 1-2 years. Now the Indian government is showing confidence and hope in real estate market investments for investors.
Reformation in Property Taxes
After launching GST rules, input tax credit impacted investors negatively which cut down their faith interests in the real estate market. Today Modi government planned to reduce 5% GST (Service and Goods Tax) from 12% for the houses under construction. Such GST rates depreciation definitely help the property investors and have stability in the real estate market. Thus new government plan to reinforcing such actions to implement the new rules for GST for the growth of real estate investments.
Benami Transaction Act, 2016
Now Modi government announced benami transaction act, 2016 aiming at finding and tracking unnamed properties. Today many businessmen own multiple properties in various metro cities including Pune, Mumbai, Hyderabad, Chennai, Bangalore but they buy such properties on the name of others by doing fraudulent. So the Modi government will use zero-tolerance policy for such people and will file a complaint against them to avoid such cases to regulate economical growth.
Read more on: Checklist for NRIs to invest in Indian property