‘Real estate market’s overview for 2016 and Outlook for 2017’ – R K Arora, Chairman, Supertech Ltd.

New Delhi, December 27, 2016: “The year 2016 has been a mixed bag for the real estate sector in India. Even as sales in the sector did not match expectations despite rate cuts by Reserve Bank of India and attractive discounts by developers, there are visible signs of a full recovery in 2017. There have been some significant developments during the course of the year that will have a long lasting positive impact on the real estate sector. The notification of RERA will usher more transparency in the sector. Moreover, the successful roll out of much awaited GST in the next financial year is expected to lessen the tax burden on developers on input items such as cement and steel by removing multiple layers of taxation and instituting the tax credit system. Also, while the demonetization move is likely to have some impact on sales in the near term – especially in the secondary market where cash has a dominant role – the measure will benefit the real estate sector in the long term. It will help put an end to the massive cash based transactions in the sector, force small builders to offer realistic and not inflated prices, and reward those developers who offer quality projects with strict adherence to highest standards of corporate governance and transparency.