Real estate cos waiting for clarity on GST, new law: Study

The real estate sector is facing a multi-year slowdown due to poor demand because of high prices. The sluggish demand has resulted in liquidity crunch to developers and huge delays in delivery of projects.

IANS May 26, 2017 16:11:09 IST
Real estate cos waiting for clarity on GST, new law: Study

New Delhi: Sentiment in real estate sector has improved post demonetisation but the industry is still in 'wait and watch' mode due to lack of clarity on reforms, including the new real estate law and GST, according to a study.

Real estate cos waiting for clarity on GST new law Study

Representational image. Reuters

Property consultant Knight Frank India and FICCI today released its real estate sentiment index, based on a quarterly survey of key supply-side stakeholders, which include developers, private equity funds, banks and non-banking financial companies (NBFCs), "Post the policy intervention by the government in November 2016 that shook the real estate sector, the current sentiment score (53) has seen a substantial uptick from the drastic fall seen in Q4 2016 that had pushed the score to 41, which is the worst in the last three years," the report said.

"This substantiates the transitory impact of the demonetisation policy initiative," it added. The "wait and watch mode” is still prevailing in the sector in the expectation of clarity on various policy measures by the government in the next six months.
The stakeholders are not very clear about the impact of the changing environment on account of policy interventions like Real Estate (Regulation & Development) Act, 2016 (RERA), Benami Transactions (Prohibition) Amendment Act, 2016 and Goods and Services Tax (GST).
The real estate sector is facing a multi-year slowdown due to poor demand because of high prices. The sluggish demand has resulted in liquidity crunch to developers and huge delays in delivery of projects.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Kerala Police Act Amendment put on hold by Pinarayi Vijayan government; similarities to scrapped 66A, 118(d) exist
India

Kerala Police Act Amendment put on hold by Pinarayi Vijayan government; similarities to scrapped 66A, 118(d) exist

The LDF government's claim of passing the law to protect women and children from cyber bullying or abuse falls flat as existing laws too provide for the same

KSLU exams 2020: Law students promoted earlier asked to appear for previous semester's exams after colleges re-open
India

KSLU exams 2020: Law students promoted earlier asked to appear for previous semester's exams after colleges re-open

The university also clarified that the students studying in intermediate semesters have been promoted to take admission for the next semester

Punjab farmers to lift rail blockade from Monday, but threaten to return if concerns not addressed in 15 days
India

Punjab farmers to lift rail blockade from Monday, but threaten to return if concerns not addressed in 15 days

Protests at toll plazas, outside railway stations, shopping malls and residences of BJP leaders will continue, the Bharatiya Kisan Union (Rajewal) said