Gujarat realty market may see 80% slump owing to GST, RERA

Gujarat realty market may see 80% slump owing to GST, RERA

The Real Estate Regulatory Authority (RERA) and the Goods and Services Tax (GST) will together have a sledgehammer impact on the realty sector in Gujarat, forcing up to 80 per cent slump, say market experts.

“RERA, the new bill by the central government for regularising the real estate sector in the country, and the much-touted GST, will have a cumulative effect on the real estate business in coming days,” according to Ashish Patel, President of the Gujarat Institute of Housing and Estate Developers (GIHED) and the Confederation of Real Estate Developers Association of India (CREDAI).

“There is much confusion about both laws and its repercussions on the market will be obvious in the coming days. Till now, there is no clarity on RERA,” said another expert.

“People will prefer to wait and watch after these laws come in force, rather than jump in straightaway. So for 2017, we expect that the real estate market will witness a slump by almost 80 per cent,” Patel said.

He was speaking to the media while giving details of 12th edition of “Homes for All” — the real estate Expo, which is Ahmedabad’s biggest property expo. It is dedicated to affordable housing in “line with Prime Minister Narendra Modi’s vision of housing for all by 2022.”

The two-day property show begins on Saturday at the university convention hall, where top realty players of Ahmedabad will showcase a selection of the “well-executed housing and infrastructural facilities and developments”.

According to Patel, more than 70 developers, 200 projects and 15 allied industries will participate in the 12th edition and more than one lakh people are expected at the show.

“With the implementation of the RERA, 2016, the interest of the consumers is going to be protected. RERA is going to make home buying process simpler and easier as well as transparent for the buyers. We expect an increase in the demand due to this but that will take some time. It all depends on when the government constitutes the RERA and clears the confusion about GST,” said Ashish Patel.

Gujarat realty market may see 80% slump owing to GST, RERA