Research Topic

 How the realestate market has evolved over the years?

Write about the pricing and how economic reforms over the period especially during 2004
have impacted the stakeholders involved in the industry
 How the mode of investment in affordable housing sector changed?
Inference or expected outcome to the question
Previously it used to be income made in other sectors of business or by employees. With the
new regulations now it’s in the form of loans since its more tax beneficial.
 Is it profitable to invest in real estate anymore?
Yes it is, but not as much as it was before and try add a bit on alternate forms of investment
that people are trying to do.

 Why there were difference between market price and actual price of registration
You know answer to this question. Just to avoid stamp duty. Try to present evidence if you
can by searching for references like ‘ Role of black money in construction industry in INDIA’
 How GST, RERA and Demonetisation effected the real estate market?

Demonetisation

The demonetisation of 500/1000 rupees bills in India was initially received with a lot of panic
and created chaos in certain sectors of business which are pre-dominantly cash dependent.
The real estate sectors was the most impacted sector due to this move since the revenue in
this industry is mostly cash dependent. As an immediate result the property registrations
have dropped by 40% forcing the developers to put the existing projects on hold or in some
cases completely abandoned to avoid losses and risk. This phenomenon was most common
but is not applicable to all the cites in India. In cosmopolitan cities like Bangalore and
Hyderabad where the demand for affordable housing is very high the sales at the major
development organisations have increased steadily since the investors were buying
property’s with the money borrowed from the banks which is obviously accountable. This
way the mode of investment have played a key role in the sector.

The most effected group of stakeholders effected due to this move were the construction
workers. Previously the workers were paid in cash by the developers( cash which was not
accounted for). Now the developers had to pay the workers in the form of cheque or
through wire transfer which would be accounted for. This way all the stakeholders in the
industry are accounted for. One key consequential impact observed across the industry was
the rise in demand for affordable housing, also the government have aided this process by
introducing tax benefits to the investors investing in affordable housing segment.

Discuss the long term effects of cash less economy in the real estate industry and the
predicted outcome or the effect on the industry at large

Role of Real Estate Regulation and Development Act 2016

Effective from May 1st 2017, the introduction of new regulations was to provide investors
with more transparent and safe environment to invest in real estate by holding the
developers accountable for the quality and punctual handover of the properties as agreed
upon initially as part of the agreement made by the developer with the buyer. Previously the
developers used to divert the revenue from the existing project to the successive project so
 as to have control over the market and pricing. This in turn have effected the quality of the
structure and the often buyers had to live with a series of arrears to get the property handed
over by the developer.

With the new regulations incorporated in the RERA Act the builder have a give a 5 year
structural warranty and also the revenue that the builder gets as part of the agreement with
the buyer had to stay in a business account which ensured that the money can be used only
to develop and complete the project with in the agreed upon period restricting the diversion
of funds by the developer.

Include how the regulations have effected the industry. And try to discuss the short term
and long term effects of the regulations from both buyers and developers prospective

What’s GST?

GST (Goods and Service Tax). Even though the GST is still in the initial stages of
implementation in the sector it’s quite evident that the existing projects which posses the
appropriate approvals from the concerned departments are not effected by the above key
factors i.e.(REAR Act, Demonetisation, GST). Also the processed involved in the industry are
almost streamlined as of March 2019 avoiding confusion across the industry. By introducing
a tax-slab of 28% on certain commodities the prices for construction have increased
significantly. Also the residential properties which come under 12% tax slab would attract
more investors into the sector and aid upcoming or developing construction companies and
also the buyers. The streamlining of taxation involved in the industry was also adopted to aid
Foreign Direct Investment into the country. But FDI expected in the industry is not quite
evident yet.

Try developing on how taxation across the industry have effected the previous or existent
way of doing business in this sector.

Research Metodology

Sampling : It needs to done from two perspective I.e stakeholders perspective and market
perspective.

Stakeholders Perspective:

Buyers Prespective:
 Is it feasible to invest in real estate?
 Are the policies in favour of assisting the buyer?
 Is it profitable enough to invest in real estate?
 If not what are the alternate ways of investing?

Developers Perspective:
 How the policies have effected the way of doing business?
 Is it profitable over a period of time to stay in business?
 What’s the scope of development with the new policies?
 If yes what are the techniques to be adopted to stay in business? If no why?
Brokers perspective:
 How did the new policies effect the bridge between buyers and developers?
 What can be done to narrow this gap between them?
 Who can capitalise upon the new set of regulations brought upon?
 What sector of buyers are entering or reframing in the industry?

Market Perspective:

 Overall what’s the growth predicted at large in the industry?

 Has it delivered so far. If not Why?
 Will the policies aid the existing players in the business or are they more favourable to the
aspiring developers?
 Role of FDI in this sector. Did it deliver or will it in future?
 How will FDI impact the growth in the industry?

Try to answer these questions with as much factual information as you can.