Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

GST, RERA may disrupt real estate market in short term: Report

Author: IANS/Friday, June 30, 2017/Categories: TRACKING THE GST

GST, RERA may disrupt real estate market in short term: Report

New Delhi (IANS) - It may take time for the residential real estate market to pick up, as the Real Estate Regulatory Authority (RERA) and the Goods and Services Tax (GST) are likely to disrupt the real estate market in the short term, a report said on Thursday.

"However, the market is expected to pick up in the next couple of quarters," the report titled "Residential Real Estate: An Investible Asset" said.

"Though the residential real estate market remained subdued towards the end of 2016 due to demonetisation, it may take time to pick up as Real Estate Regulatory Authority (RERA) and Goods and Services Tax (GST) are likely to disrupt the real estate market in the short term," the KPMG-Magicbricks report stated.

The real estate market had generated strong returns on investments to home buyers in the long-term, and was expected to continue to perform well due to the positive steps like reduction in interest rates, interest subsidy to home buyers, increased mortgage penetration and ease of FDI norms in the real estate and construction sector, it said.

The report also noted that the Indian residential property prices had more than doubled over the last decade, with India being ranked among the best performing markets globally.

"India was ranked among the best performing markets globally, thanks to the fact that real estate property prices have more than doubled over the last decade. Interesting to note is the affordability rate to own properties has come down by 50%, as income growth has lagged property price growth. That being said, India's property market is relatively affordable as compared to its global counterparts," the report stated.

Commenting on the report, Sudhir Pai, CEO, Magicbricks, said: "The urban population of India is anticipated to grow by nearly 36% to over 580 million by 2030. This along with GDP growth, job creation and mortgage growth is expected to lead to a substantial increase in demand for housing in India."

Commenting on the real estate industry's performance and the way forward, Neeraj Bansal, Partner and Head, ASEAN Corridor, and Building, Construction and Real Estate Sector, KPMG in India said: "India holds a strong potential for residential property market growth, which is likely to witness considerable price appreciation over the next decade, with property market fundamental drivers, such as GDP, rapid urbanisation, shrinking household size, higher share of working age population, and mortgage growth expected to grow at a higher pace in India."

Print Rate this article:
No rating

Number of views (311)/Comments (0)

S Vijaykrishnan
S Vijaykrishnan

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free