Bullish on Real Estate Sector

1. Interest rates are expected to fall in the short to medium term. Housing loans become cheaper and will encourage home buyers
2. Demand and Supply Scenario
Growing Middle Class
Urbanization

3. Tax Break for building home deadline increased from 3 years to 5 years
4. Tax Benefit for buying home up to INR 50,000 per annum as Per Section 88E (Limited to first time buyer up to 35 lakhs loan and cost of house not exceeding Rs 50 lakhs. This will benefit buyers in Tier 2 cities as houses in Metros are usually expected to cost more than 50 lakhs
5. Recent Real Estate Bill to benefit organized real estate sector and is expected to bring a lot of transparency which will benefit buyers
• Setting up a real estate regulatory authority which will regulate the real estate activity
• Bill does not allow developers to sell or launch projects until all the regulatory approvals are received by the developer
• 70% of the Funds collected for a project are to be maintained in an escrow amount and cannot be used for other projects
• Developers will have to sell projects or pricing has to be based on Carpet area not on the Super Built up area charging extra for common areas
• Builders cannot change the design of the project until and unless receives a written consent from two thirds of the buyers