Blog

All illustrations and pictures are artistic impressions only

Blog

All illustrations and pictures are artistic impressions only
Budget 2018: What It Means For Mumbai’s Property Buyers

The 2018 union budget of India was announced by the Hon’ble Finance Minister of India, ArunJaitley. The budget addressed some crucial aspects of the real estate sector of the country with the goal to increase transparency and accountability.
Below are some of the highlights of the budget for the real estate sector:

RERA

The Real Estate Regulation and Development Act (RERA) came into effect after the bill was passed in both the Lok Sabha and Rajya Sabha. The act aims at protecting home buyers by making builders register for both new and ongoing commercial and residential projects, publish details of the project on the RERA website and solve disputes related to property. Which means, home buyers can look up each project’s details on the RERA website in their respective state.
The act encourages transparency of transactions by making it compulsory to deposit 70% of the money into back accounts via cheques. Builders are also required to quote prices on residential homes based on the carpet area and not onthe super built-up area.
So, for example, if you were interested in purchasing a 2 BHK flat in Borivali east, the builder would now quote the price based on the carpet area only.
Moreover, many developers are reducing tax burdens on home buyers by bearing the impact of GST. Home buyers still have to pay taxes, but the good news is that some of the burden is now borne by developers.

Increase in Infrastructure Development

The finance minister announced that there will be a considerable allocation of funds for the development of infrastructure in rural regions, small towns and cities. The city of Mumbai, for example, will soon be home to a new metro line. In fact, several new projects in Borivali have been launched in anticipation of the increase in demand for flats in this region.
In a couple of years, Mumbai will boast of a new international airport in Navi Mumbai, the Mumbai Trans-Harbour Link and a slew of new metro stations.

Conclusion

With the implementation of RERA and a focus on developing the infrastructure in India (as well as Mumbai), the union budget has helped both property owners and builders/developers. There has been a boost in investments in the real estate sector in India due owing to its greater accountability, transparency of transactions and improved credibility of builders/developers.The regulation of the real estate sector has been welcomed by all stakeholders within the industry.

Privacy Statement | Disclaimer | Designed by 2 Tech Brothers

(c) 2018 Rivali Park. All Rights Reserved

Drop Your Query
Submit