The consumer-centric policies affect i.e., Real Estate (Regulation and Development) Act in 2016 (RERA), Insolvency and Bankruptcy Code, NBFC crisis and the elimination of Input Tax Credit (ITC) from Goods and Services Tax (GST) have led to a shift in focus of developers from residential market to commercial market.
Residential projects in terms of investments were a topper in the portfolios of most of the Indian real estate developers which resulted in the allocation of only a tiny percentage to commercial class. One of the prominent reasons why these players chose to invest in residential projects over commercial is because of the low demand for office spaces caused due to slower growth of economy until a few years ago. But now, with the introduction of business-friendly policies by the Central Government of India, the commercial sector has been witnessing a great turnaround.
Another reason for the shift is the limited demand for residential projects. Homebuyers anticipate a cut down of price for property values, housing demand across various segments of budget remained subdues except for those priced below Rs. 45 lakhs. Also, the incursion of REITs i.e., Real Estate Investment Trusts in India is expected to cause a boom in the commercial properties sector.
Ladder Kerala one of the top builders in Calicut . For more details about real estate tips and info visit https://ladderkerala.com
Residential projects in terms of investments were a topper in the portfolios of most of the Indian real estate developers which resulted in the allocation of only a tiny percentage to commercial class. One of the prominent reasons why these players chose to invest in residential projects over commercial is because of the low demand for office spaces caused due to slower growth of economy until a few years ago. But now, with the introduction of business-friendly policies by the Central Government of India, the commercial sector has been witnessing a great turnaround.
Another reason for the shift is the limited demand for residential projects. Homebuyers anticipate a cut down of price for property values, housing demand across various segments of budget remained subdues except for those priced below Rs. 45 lakhs. Also, the incursion of REITs i.e., Real Estate Investment Trusts in India is expected to cause a boom in the commercial properties sector.
Ladder Kerala one of the top builders in Calicut . For more details about real estate tips and info visit https://ladderkerala.com
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