Real Estate Industry in Gurgaon - Transforming into A Robust Model
Year 2012, if discussed in-depth, in terms of monetary
investments into the field of real estate was certainly not a
promising year. But towards the end, 2012 showed some
signs of positivity into the market as the inflation was
below the Reserve Bank of India's (RBI's) projected levels. It
was also due to the Index of Industrial Production (IIP)
growth, which dramatically increased in the last two
months of the year, giving new hopes for 2013.
Unlike Bangalore and Pune where corporate and Residential
property slugged, residential property in Gurgaon kept
emerging from its existing prices and touched new heights.
But if we take into context, the over all growth of the Realty
sector, 2012 remained inactive as a whole.
According to the experts, the Realty market is adversely affected by several factors, such as the minimal absorption of office
space in 2012 which works as a driving force, after residential. Meanwhile, retail also got a set back due to challenges into quality
supply, affecting the overall absorption.
The residential demand though, improved; if we specifically talk about the NCR and capital region the sale of 3 BHK flats in
Gurgaon were consistent; on the other hand, in other regions of the country even the most promising developers from the
country continued to struggle with unsold inventories.
The experts have already signaled a huge increase in the prices of 3 and 2 BHK flats in Gurgaon due to the expected moderation
in inflation and strengthening policies. Here are a few insights for the remaining 2013 which could change the course of the real
estate industry in the country.
The Realty regulatory bill, This bill is expected to be tabled in the Monsoon session of the Parliament this year. The bill is aimed at
bringing transparency and accountability in the realty sector. If passed, the bill was expected to exceed the prices of 3 and 2 BHK
Flats in Gurgaon which are already sky high and will adversely effect residential pricing of other regions as well.
Though the dissent on this claim from the ministry are exactly opposite.
This regulatory bill has underlined a very crucial aspect of developing and selling of residential property as the developer as per
this bill would be expected to hold all the licenses and permissions should be in place, before start selling the flats.
The Bill also provides, setting up a regulator for the real estate sector and strong provisions like a jail term of up to three years for
developers, who make offenses like putting up misleading advertisements about projects repeatedly. It also intends to make it
mandatory for developers to launch projects only after acquiring all statutory clearances from relevant authorities. The Bill makes
it mandatory for builders to clarify the carpet area of the flat and not the 'super-built-up area' or any other misleading glossary.
The bill is expected to bring a lot of discipline in the buying and selling business of the property which was missing previously. It
has been termed as the “Pro buyer bill” as it involves monetary penalty in on the developer for delays, and even jail terms for