Home sales buoyant, buyers seem undeterred by GST & RERA
engaluru: With the recent introduction and implementation of Goods and Services Tax (GST) and RERA, the home buyer sentiment to invest in property has been upbeat, alongside these pro-industry initiatives by the government. The recent Shriram #Right4U Challenge, organized by the Bengaluru-based developer, Shriram Properties, had over 7500 home buyers queuing up for a property across prominent corridors of Bangalore, with over 300 units been sold. Even the recent IT layoffs and volatility in the Indian IT market, didn’t dampen the home buyers from investing in property.
The home buying population of Bengaluru showed interest in investing in mid-market and luxury segment real estate, with clear focus on good connectivity, amenities and quality construction, which remain a challenge to attain in the affordable segment. A major factor that attracted home buyers was the introduction of 10-90 subvention scheme by the builder, giving buyers no load on pre-EMI till possession.
Located across prominent pockets of Bengaluru, all the projects of Shriram Properties gained prominence, and as most of the ongoing projects are in South Bengaluru, the majority of enquiries received were also from people residing in South Bangalore. The Shriram #Right4U Challenge is a build up to the major growth plans for the coming year with expansion across key cities like Bangalore, Chennai, Kolkata and Vishakhapatnam.
Elaborating on the impact of GST in real estate, Mr. M Murali, Managing Director, Shriram Properties, said, “The real estate industry across the country is at the cusp of experiencing a revolution, with the implementation of GST. GST plans to introduce some serious measures within the sector. It will radically transform the real estate sector and will help real estate growth in the long term. There is no doubt that GST will be a game-changer for the Indian industry, especially for the real estate sector. We have always believed in offering honest prices to our customers, even before the GST benefits rolled in. In fact, that combined with the pre-EMI subvention offer gave these hundreds of home buyers the confidence to book their home with us.”
He further added, “Home is a long term investment and we came out with this good initiative keeping the customers interest in mind. With the no pre-EMI offer, the home buyers came forward to buy home with much enthusiasm as it does not load the customers.”
Shriram Properties is looking at aggressive growth in Bengaluru with approximately 300 units being sold in the first quarter of 2017-18. They have plans to raise Rs 800 crore from key investors which include Walton Street, TPG Capital, Tata Opportunities Fund, ASK, Motilal Oswal, Amplus and ICICI Prudential. Today Shriram Properties holds close to 2% of the FDI in India, the largest by a single developer.