Thursday, 15 December 2016

The Most Common Challenges and Solutions for Indian Real Estate

Indian real estate sector being one of the most promising segments in India is quite likely to face a number of challenges that might turn out to be a hurdle in its growth. Thus, being aware of the solutions is not only important for the real estate honchos, but is also beneficial for the overall development of India’s economy. Especially, with the stumpy per-capita urban infrastructure and the rising population in the high urban areas, the growth of real estate has been restricted to a significant extent. However, this is not an ultimate threat and has a number of solutions to tag on.
Below are the most common challenges faced by Indian real estate –

• To ensure the long-term growth of the sector, it’s always necessary that there would be a good liaison between the state bureau and the central ministry level. There are many instances where the dearth of required policy framework has been the main reason behind a sea of real estate disputes. Inadequate discussions between the state and central level result in nothing but a drawn out sanction process.

• Shortage of land is again one of the most common challenges faced in the industry. Despite a good demand for the residential projects as well as the commercial projects, the scarcity of land not only inflates the property cost, but also results into a rise of the overall outlay of the project.

• Adverse taxation policy has often been accountable for a number of property rows. With the inclusion of a variety of sales taxes like VAT and stamp duty, the ultimate sales price seems to swell up to a considerable extent and brings an unaffordable property into existence.

• Last but not the least; the lack of top-notch technology is often seen as the prime reason for several delays, which ultimately decreases the property value to a big extent.
However, the Government has started taking a number of initiatives and it’s expected that these special ideas would take the real estate sector into the right track. Some of the best edges taken by the Government are as follows –

• The inception of Reits (Real Estate Investment Trust) has brought in a number of modifications in the whole system and seemed to impart much transparency in the way real estate sector operates.

• The fact that Reits holds the power to enhance the investors’ profile has earned more constancy in the income source, thereby imparting a considerable mellowness in the real estate sector.

• Also, with the running stride of time, a number of tax holidays have been proclaimed by the Government and it has left a direct impact on the growth of Indian real estate sector.


• Finally, with the Government declaring an investment of Rs. 97,000 crore on the transportation, the chance of several real estate activities has automatically been increased.
Moreover, with more and more people leaning towards urbanization, there is a broad prospect of growth for the Indian real estate sector.

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