Is Real Estate Market still a good choice of investment?

Everyone knows the reality of real estate market, where it is going on from last 5-7 years. Drastically market is going down and down. Still 4-5 lacs ready to move flats is unsold in Delhi-ncr. There is no buyer,no investors and no sign of improvements. construction is running slow and no investors for pre-launch or new launch projects in India.

Why?

As we know everyone required three basic needs of life Roti , Kapda,& Makaan(Breads, Clothes & Home). But what happening? Either from Government side there is delayed in policy or builders and developers are not full filling their commitment.

What can be done for improvement?

There are few steps if government takes in upcoming budget 2017 situation can be improved the market. It will be beneficial for both side, either for end user or also for builders. These steps are follows:-

A. Regulatory Body:- There is no regulatory body from the government side in the real estate market thats why builders and developers are not full filling their commitment on time. The main reason behind of late possession or fraud is because of no regulatory body. So as soon as possible government should make it for the future of this Industry.

B. Real estate bill:- Although this bill RERA came very late but was the needs of time . So many new things came as-

1.The current practice of selling on the basis of ambiguous super built-up area for a real estate project will come to a stop as this law makes it illegal. Carpet area has been clearly defined in the law.
 

2.Currently, if a project is delayed, then the developer does not suffer in any way. Now, the law ensures that any delay in project completion will make the developer liable to pay the same interest as the EMI being paid by the consumer to the bank back to the consumer. 

C. Single window clearance:- Single window clearance is nothing but all the approval regarding the construction, electricity, water, land, FSI, FAR etc.required before launching the projects. We have heard last year regarding the 100 smart city, which has announced by our PM Mr. Narendra Modi. For this smart city there is a single window clearance.If this approved in this budget, it will be good for builders as well as buyers also. Projects will not delayed and possession will be on time.

4. Government policy:- Govt policies also effects on market. Now this sectorwant from government to increase tax deduction limit for housing loans, especially for buyers in metropolitan cities. As we know the property rate is very high comparison to 2 tier and 3 tier cities. The govt most awaited tax GST can be game changer for real estate market and because of that it is expected of lower construction cost that would be beneficial for buyers.