Prashant Thakur, Head – Research, ANAROCK Property Consultants shares his insight with Sandeep Sharma about the latest real estate trends in MMR, demand scenario in Thane and how RERA has benefited so far.
What are the latest real estate trends in MMR?
MMR seems to be currently re-orienting to the prevailing market conditions. The days of pre-launches and soft launches have faded away and the developers are now approaching the market with their new avatar of financial discipline, accountability and transparency. It clearly seems to have migrated from an investor-driven to an end-user friendly market. While the overall supply has dropped by around 30% between 2016 and 2017, the absorption has declined only by around 25% or so during the same period. With restricted new supply and improving demand, the unsold inventory seems to be on a decline in MMR.
How far the demand scenario has improved in the Thane region post GST implementation?
With massive inherent demand and plethora of residential property options suiting various budgets, Thane has been a key contributor in the MMR’s real estate growth. Thane has incessantly contributed around 15-20% to MMR’s annual new supply. GST implementation has been tough on all cities, especially due to the uncertainty of pass over of Input Tax Credit (ITC). While GST is supposed to be tax neutral and the Government has given a clear anti-profiteering directive to the developers, the end-users seem to be perplexed over the complexity of this new taxation regime. Nonetheless, Thane continued to be a key region and accounted for 15% of overall MMR sales in 2017. With unsold inventory of around 33,000 units, the lowest in MMR, Thane continues to grow on an upward trajectory.
Could you enlist the benefits derived from RERA so far?
RERA has ushered an era of financial discipline, accountability and transparency in the Indian real estate sector. With the developers now being expected to adhere to stringent norms set forth by RERA, the possible benefits are humongous. Right from ensuring that the customer advances are used in the right manner and only for the particular project under consideration to confirming timely execution of projects, RERA has been a boon to the home buyers. The home buyers are no longer under the mercy of the developers and the market has now tilted in the favour of end-users. All-in-all, it seems to be the right time to ‘seal the deal’.