The year 2018 was uncomfortable for Indian real estate as it underwent the maturing process which had begun in 2017 with the Real Estate (Regulation and Development) Act 2016 (RERA) and the goods and services tax (GST). Though introduced in the previous year, these regulatory changes had their maximum impact in 2019. While the housing market was severely hit by the combined effect of demonetisation, RERA and GST, it began recovering in 2018, albeit gradually. Anarock data for 2017 indicates that while 2017 saw a huge decline of 70% in project launches, 2018 saw new launches pick up by over 30% as against 2017.

Similarly, while 2017 saw housing sales decline by 13% over 2016, 2018 brought a notable quarter-on-quarter sales growth with as many as 178,470 homes finding purchasers in the first three quarters of the year in seven top Indian cities-Bengaluru, National Capital Region, Mumbai Metropolitan Region, Chennai, Kolkata, Pune and Hyderabad. While Q4 sales numbers are not yet in, if we extrapolate Q4 housing sales from the preceding quarters, 2018 will have witnessed a rise of 15% in overall housing sales when compared to the preceding year. In 2018, the housing sector's most vibrant segment was affordable housing.

The problem of stalled housing projects continued to plague the market and acted as a stumbling block to future growth. Definitely, this issue needs to be strongly addressed in 2019 and the incumbent government is actively pursuing solutions. What progress is made on the ground remains to be seen.

In spite of a slew of policy announcements, data indicates that the government's much-touted PMAY scheme saw dismal progress in 2018. In 2015, the government had set its sights on deploying as many as 1 crore urban homes in less than 10 years. The available data, however, indicates that a mere 15% new low-income group (LIG)/economic weaker section (EWS) homes have been built so far under PMAY.

Throughout 2018, a broad rationalisation of rates was carried out and after the last round last week only about two dozen goods were left in the top 28% bracket.

New Delhi: It faced a huge political backlash and became the butt of jokes with opponents calling it 'Gabbar Singh Tax', but weathered all of it in 2018 and its proponents are confident the GST (Goods and Services Tax)is fast emerging as a strong tax-compliance tool and may eventually evolve into a single-slab taxation rate.

Dismissing the criticism that it was a 'good law, badly implemented', the those in support point out it took two years for a GST to be implemented in Malaysia - the last country before India to have introduced such a tax - but only to be scrapped in the end by a new government there.

Year-end trends: Does real estate still offer lucrative ROI?

Will real estate continue to be a preferred investment class in 2019? We speak to some experts, to gauge how real estate compares to other assets like stocks, gold, etc., to get some answers.

Real estate is often considered as one of the best assets globally, vis-à-vis return on investments. In India, recent policy reforms like the Real Estate (Regulation and Development) Act 2016 (RERA), real estate investment trust (REIT), the Benami Act and the Good and Services Tax (GST), have helped to transform the sector into a more organised one.

Aditya Kedia, managing director of Transcon Developers, maintains that the present real estate market offers a win-win situation, for potential buyers and developers alike. "With RERA in place, developers are bound to deliver projects within the stipulated period of time," he says.

Manju Yagnik, vice-chairperson of the Nahar Group, adds that "The sector has witnessed growth in recent times, with a rise in the demand for commercial, as well as residential spaces. Private equity investment in real estate is estimated to grow in the coming years."

Rationalisation of the GST regime and easier finance for the real estate sector, are some of the measures that the fraternity is hoping for in the new year, to make it easier for home buyers to get their dream homes.

The Indian real estate sector has witnessed a sea change, over the last couple of years. However, in spite of the advancements in construction, the use of high-end technology, the advent of smart homes and flexible apartment configurations being made available according to the evolving market, the industry is going through a lull. Real estate experts maintain that with all the major policies having been implemented in the last five years, 2019 could be the year that the property market bounces back. Nevertheless, they add that several niggling issues also need to be addressed, so that all the stakeholders in the sector can reap the benefits of a bright first quarter in 2019.

A completion certificate is an important document that states a property has been built, according to standards and proves the legitimacy of a real estate project. We explain its importance, for developers and buyers.

A completion certificate is a document that is awarded, after the inspection of a real estate project, stating that it has been constructed according to the approved building plan and that it meets all the necessary standards set by the local development authority or municipal corporation. This certificate needs to be obtained by developers, as well as owners of standalone properties. It is required, to ensure the supply of utilities like water, electricity and drainage system.

An increasing number of developers are launching smaller projects in metropolitan cities. We look at the reasons for the emergence of this trend and whether it is likely to continue in the year ahead.

The metropolitan and large cities in India, have several real estate micro-markets that are reasonably priced and offer good returns for end-users and investors alike. As these cities tend to have limited supply of land, developers need feasible options, to meet the increasing demand for housing. Consequently, smaller projects are an option that is being explored. Moreover, the general reduction in the sizes of flats, has also contributed to affordability.

Rahul Shah, CEO of Sumer Group, points out that "While smaller projects are an attractive target for developers, given the smaller gestation period and quick returns, luxury housing projects have a niche following that gives it a sizeable market share. People in the metro cities are more concerned about the location of the house than the size of it and are, hence, are willing to opt for houses with sizes that fit their budgets."

CII believes the government will continue to place high priority on simplifying business procedures in 2019, especially in terms of working with states for grassroots improvements

New Delhi: The country is expected to witness strong economic growth in 2019, after it has emerged as the fastest growing major world economy this year despite growing global vulnerabilities, industry body CII said Sunday.

The positive outlook is buttressed by strong drivers emanating from services sector and better demand conditions arising out of poll spend, with the general elections slated next year, according to the chamber.

"Better demand conditions, settled GST implementation, capacity expansion from growing investments in infrastructure, continuing positive effects of reform policies and improved credit offtake especially in the services sector at 24 per cent will sustain the robust GDP growth in the range of 7.5 per cent in 2019," CII Director General Chandrajit Banerjee said.

The industry body observed that despite 2018 being filled with external vulnerabilities arising out of rising oil prices, trade wars between major global trading partners and US monetary tightening, India outshined as the world’s fastest growing major economy.

It has identified seven key drivers for growth that need to be fostered and suggested policy actions for robust GDP growth to continue in 2019. Among key growth drivers, CII hopes the GST Council will consider extending the tax to currently exempted sectors such as fuel, real estate, electricity and alcohol.

The chamber outlined that credit availability has been a challenge, particularly for the micro, small and medium enterprises, as credit flow to industry grew by a mere 2.3 per cent in first half of the current financial year. "CII submits that the RBI should introduce measures such as revisiting lending restrictions of PCA (Prompt Corrective Action) banks, opening of a limited special liquidity window to meet emergencies of financial institutions, including Mutual Funds besides others to improve liquidity in the system," it said.

Besides, the process of insolvency resolution has taken shape, the chamber feels the government should consider setting up additional benches of the National Company Law Tribunal to strengthen the judicial infrastructure for easier and faster exit of distressed businesses.

The chamber believes the government will continue to place high priority on simplifying business procedures in 2019, especially in terms of working with states for grassroots improvements.

"We look forward to digitisation of land records, online single window systems in states, and enforcing contracts for even more improvements in ease of doing business," said Banerjee.

On agriculture reforms, CII suggested that it is important to persuade states to implement the Agriculture Produce and Livestock Marketing Model Act, which has been implemented in just four states, to strengthen agriculture produce marketing.

Going ahead, it opined that India also needs to increase domestic production of oil, providing a special window for oil marketing companies to procure fuel and stepping up diplomacy with the US to continue to secure purchase from Iran.

This story has been published from a wire agency feed without modifications to the text.

The year saw increased buyouts and high activity in sectors like infrastructure, realty.

Deal-making in 2018 was one for the record books. All previous records were broken by crossing the $100 billion mark in terms of deal value across both private equity (PE) and strategic (M&A) transactions. India proved to be an investor magnet, attracting close to $35 billion during the year by way of private equity, which has now clearly entered a phase of maturity led by a steady stream of investments, record levels of exits and mounting levels of dry powder.

We examine the various ways in which technological advancements are likely to positively benefit the various stakeholders in the real estate sector, in the coming year.

Various innovative technologies have made inroads into the real estate sector in India, right from property search to construction and signing of contracts. Leveraging of these technologies, is likely to reshape the future of the real estate industry in 2019. For a buyer, the changes are welcoming but for property developers and consultants, these changes could prove disruptive and challenging. "The needs of millennial home owners, are likely to revolve around intelligent buildings with advanced technology. Thus, buildings with modern designs are likely to command a premium in the cost-conscious Indian property market. For developers, the early adoption and investment in technologies, will prove to be the best defence against disruptions," states Surabhi Arora, senior associate director - research, Colliers International.

Technologies that facilitate property discovery, map-based location services, amenities-based searches, dynamic pricing models, marketing, online credit score and EMI services, online agreements, 360-degree videos, online token payment facilities for property bookings, etc., are some of the developments that are likely to have a profound impact on the real estate sector in 2019.

DDA is also in the process of setting up a call centre having specialised agents, who would ensure that people don’t have to visit its offices for any queries.

NEW DELHI: You can now book a community centre, apply for a sports complex membership and transfer leasehold property to freehold without queuing up at Delhi Development Authority (DDA) offices.

A spokesperson said 33 forms are now available online for various DDA services, including sports complex membership, RWA requests, booking of sites, conversion of different types of properties, staff-related schemes etc. "These forms are available at the public forms section of the DDA website. For allotment of one-bedroom flat to government agencies, the online application has been designed and developed, also available on the website in the online services corner. The auction of various types of plots is being done online," he said.

The spokesperson added, "For lodging complaints about unauthorized construction or encroachment on government land, for Special Task Force and for monitoring the same, an online portal, dda.org.in/stf/, has also been designed and developed for general public, and nodal and grid officers of various organizations".

Car sales were robust in the first half of 2018 but weakened since July due to the Kerala floods and high petrol and diesel prices.

Mumbai: Domestic passenger car sales rose by 6.05% during a volatile 2018 to over 2.55 million units on the back of a low base before July and a string of new launches after the Auto Expo in February. The trend in car sales was robust during the first half of the calendar year on the back of new launches, expectations of a healthy monsoon and a low base, but weakened since July due to factors such as the devastating floods in Kerala, unfavourable macroeconomic scenario, as well as regulatory changes and high fuel prices, which increased the cost of ownership.

The hardest blow came during the 42-day festive season, which ended with Diwali in early November, when retail sales of passenger vehicles fell 14%, according to the Federation of Automobile Dealers Association, which attributed the dip in sales primarily to the liquidity crunch faced by financiers.

The festive season is crucial for auto makers as buyers consider it auspicious to make big-ticket purchases such as cars, gold and real estate. About 30% of annual car sales happen during this period.

In December, the country’s top six carmakers—Maruti Suzuki India Ltd, Hyundai Motor India Ltd, Tata Motors Ltd, Mahindra and Mahindra Ltd, Toyota Kirloskar Motor Pvt. Ltd and Honda Cars India Ltd—sold a total of 200,367 vehicles, compared with 200,456 units a year earlier.