While 2018 was an unexpectedly eventful year, due to the peaks and troughs of real estate sector in the year gone by, due to effects of legislative actions like RERA, PMAY, GST and Demonetization affects, it’s easy to predict that each and every event of last year will have an impact on the how the next may turn out to be which is Consolidation, Delivery and Growth of the sector. The Market consolidation that started in 2018, will carry forward to 2019, as huge amount of promised inventory is yet to be delivered, and there is no letting down from the bureaucratic, political or judicial front on the issue. Also in an after RERA scenario, no developer will think about announcing a new project unless there is adequate availability of funds and liquidity before the commencement of the project, so why not focus your energies in bringing in the much needed consolidation of business, which will eventually lead to the Delivery Phase, and the coming year will not only see loads on deliveries from the projects in their final stages, but also of ready-to-move in projects that were stuck due to regulatory framework earlier, due to an increased interaction with the other stakeholders of the industry, including the political class and bureaucracy of the sector, seeking out of box solutions to delivery issues. With consolidation leading to deliveries it will not just bring back the liquidity in the business but also consumer confidence back in the sector. Also for majority of Developers the after delivery stage will lead to new projects and new announcements, leading to the much awaited cycle of growth in the sector. With emphasis on Housing for All 2022, and initiatives like Pradhan Mantri Awas Yojna (PMAY) focusing on big delivery numbers for Affordable Housing, there is a lot of growth on anvil and with new legislations and regulatory reforms that are now in place the new growth is expected to be more controlled and consolidated rather than the one fuelled by fly by night operators, which was obviously a long desired goal of all honest stakeholders of the sectors.
Year End Quote – Mr. Amit Modi, VP CREDAI Western UP and Director ABA Corp.
