REAL ESTATE: Some of the evolving patterns in real estate..
FINANCIAL EXPRESS ARTICLE Last few years have been a tectonic shift in India’s real estate sector. The game-changing regulations, new taxation regime, and now NBFC crisis are making everyone wait and re-calibrate the investment strategies. Real estate was a booming sector from 2011 to 2016. During this period, stock markets gave an annual return of 6.2% while gold gave an annual return of 3.6%. This attracted a lot of investors or so-called hot money in the residential real estate because apparently prices were supposed to only go up. Nobody wanted to miss the one-way bus. Developers would sell a lot of inventory at pre-launch stages itself at discounts and use customer advances received to secure approvals for the project or even pay balance land costs. With tax regulatory regimes, everyone with untested capabilities wanted to become a developer. Those were the abnormal and exceptional times. With low entry barriers, new developers entered the market, investors made out o...