With over 14 years of experience, Pearlene has worked in departments of Design, Business Development & Acquisitions and focuses on Marketing Strategy, Brand Management & Corporate Communications for Shriram Properties. We happened to speak to her on the recent developments in Real Estate and how developers are gearing up to continue growing amidst the challenges. Here’s what she has to say
How are developers in Bangalore reacting to the RERA coming into action soon?
The reactions from developers in Bangalore, both big and small, have been very positive. The sentiments from the developer community is one of optimism and hope, hinged on the belief that the government has taken a progressive step.
The perspective is that through the implementation of RERA, the industry would witness financial discipline, credibility, fair practices, delivery of Projects on time. There would be more transparency and it will help protect the interest of the buyer. It will also attract higher investment and PE funding for projects which is a big plus.
What’s the expected impact of GST on Real Estate?
The Real estate industry across the country is at the cusp of experiencing a revolution, with the implementation of two most significant regulations – RERA & GST. While RERA aims to bring a regulated system, catalysing the sector’s growth; GST aims at simplification of the overall business, thereby benefiting both the developer as well as the consumer.
GST will simplify tax compliance and minimise the scope for double taxation, so, there is clear reason for home buyers to be optimistic. This will also help real estate growth in the long term.
Will the current job uncertainty rumours especially in technology world having a negative impact on Real Estate in cities like Bangalore, Pune?
I think one should not be disturbed by the prevailing turbulence within the technology world, especially across the tech corridors of Bangalore and Pune. Its just a temporary phase within the industry and our country’s current economic condition is robust enough to weather the tide.
Also, increased consolidation as well as transparency and launching of REITs (Real Estate Investment Trusts) is expected to boost both foreign and domestic investor participation multi-fold.
What all are developers doing to keep up with the pace of growth that real estate is used to?
Currently most developers are offering attractive plans/schemes to cater to the growing demand from the end-users and investors. The developers are also focusing on affordable housing to take advantage of tax benefits and other incentives offered by government in the latest budget.
Developers continue to offer subsidized payment plans and price guarantees, as they feel that prospective buyers should not delay their buying decision.
With new growth corridors, buyers are now spoiled for choice. The reputed builders, who offer homes in good locations, with superior amenities and facilities are most sought after by these buyers, looking at capital appreciation as well as potential rental income.
The views expressed here are solely those of the person interviewed in her private capacity and do not in any way represent the views of the brands/organizations she is or has been associated with.