The 2019 standpoint will be quite positive. The supply is coming in gradually due to the new regime of the RERA. All the supply will begin coming in just after the approvals are done and the registration of all of the projects can be done with RERA. The stability of the market will surely increase while doing so. This will lead to a steady chain in the demand front as well. The market condition is quite good and 2019 would be an extraordinary year.
In Pune, there are no residential projects going on at the present. The completion of 800,000 square feet IT park is being done and confirmation is there that it won’t be for sale. The development will start soon. In Mumbai, there has been a tie up of two or three properties for private and the entire thought is to extend in new places. Mumbai has a lot of potential. The land will be approved soon and once the approvals are passed, the RERA authorities will launch. In the following two quarters, there can be a launch in Mumbai.
Changes with guidance and chances of outperformance and the projects in the pipeline
The target is going to be crossed. As of now, everything looks steady and solid. At this stage, one can expect that the target will be achieved easily.
In Bangalore, there are few projects in the pipeline that are waiting to be approved. The design of the Prestige Smart City is completed. It will have all the ticks and is in Sarjapur. By the PMAY scheme, a project in Bangalore called Finsbury Park is also going on.
One can expect the approval this month. The launching of the Byculla project will be done as fast as possible after it gets approved.
The target will cross. Development for IT space in Pune and Bangalore will also start.
Target will cross at the GIFT City in Ahmadabad as well.
Six million sq ft is under production at present. Few months ago, the Prestige Shanti Niketan forum has been opened as well and is having a good trade. Two or three more assets are under construction which should be ready by 2020, adding to the company’s rental portfolio.
Impact of GST in the development
GST is currently at 12% for the customer over the cost excluding the stamp duty.
Since the input credit is no longer planned to be given to the developer by the government, the developing costs will go up as well, not to mention that the GST rate is also being lowered.
As usual, the cost of the developers going high will also affect the customers and their payments indirectly.
The slab may be changed for the fact that the change of rate in the GST will definitely help a consumer to get a house that is more affordable. If the cost of the house is directly proportional to the tax that has to be paid, it may be the best for everyone.
Yet, that is a discussion now and it is being discussed by the council of ministers at present. The customer must always be provided with affordable housing. Only then, the housing industry will get encouraged, if the consumer feels that the cost of the property has been lowered down. The designers have done all they could, and with the correct regulation of the taxes, even the consumers will feel that they will be a lot more beneficial than they are now and then they can easily afford the property or house which they dream of buying.