Pioneer provides good, timely and satisfactory services with unmatched efficiency. All required feedback is received timely. All my dealings with them always run smooth and they comply with the most up-to-date regulations in the market. I wish them luck in their future endeavors...
- Mayank Kakrania - Advocate
I have been working with Pioneer Property for the past one and half decades. I am very happy with their service and our relationship has been quite fruitful. Pioneer's well coordinated and transparent approach has been effective in our mutual growth...
- Nakul Himatsingka - Managing Director, Ideal Group
The visionary advices, professionalism, hardwork, and passion for customer care are the best of Pioneer
- Kamal Periwal - Chief Architect, Maheshwari & Associates
We see you as a very important partner for our growth. Your sincerity and dedication in execution is really appreciable. Strategic reporting, extensive database and prompt actions are some of the unique features that give Pioneer a cut above the rest in the market. Our dealing with Pioneer has been very smooth and entrepreneurial support throughout the completion of our project has been phenomenal...
- Sumit Dabriwal - Managing Director, Hiland Group
New Year jump-starts with positive & aggressive vibes
The New Year 2017 initiated a new dawn of optimism coupled by the demonetisation move that has given a lethal blow to India's serpentine black economy. Indian Real Estate, which was long under the negative influence of black money operations, has received a great relief from this aggressive policy. There is a straight indication from the Government that 'Business will be conducted like Business' and there will be nothing in between; absolute transparency will remain the fundamental premise of business mechanics and there will be zero tolerance for un-professionalism. While demonetisation facilitated the nation's banking sector to magnify with humungous deposits, the Government of India did not leave any stone unturned in providing relief to the consumers by declaring reductions in home loan rates to the tune of 4% and 3%, for loans up to Rs. 9 lakhs and Rs. 12 lakhs respectively, under PMAY (Pradhan Mantri Awas Yojana). In the pipeline, progressive policies like RERA (Real Estate Regulatory Authority), GST, REITs and so on are expected to streamline the market mechanics as well as consolidate both the residential as well as commercial market segments. The upcoming Union Budget, to be announced on February 1st 2017, may be regarded as a potential platform to witness progressive policies that will be instrumental for dynamic development of the Indian Real Estate Sector.
Expectations from the upcoming Budget
More elaborations of PMAY scheme to provide benefits to all
The Government of India has made a decisive move of rolling out significant deductions in home loan rates under the PMAY scheme. It has been stated that a 3% interest rate reduction would be applicable for loan up to Rs. 12 lakhs and 4% interest rate reduction would be applicable for loan up to Rs. 9 lakhs. However, there is some want of clarity in the definition of beneficiaries (with proper clarification of income slabs). This area needs to be clarified in the first place and interest subvention of 3% and 4% should be made operational. The first time home buyers can also be provided some tax incentives which would help in materializing the Government's holistic agenda of Housing for All by the year 2022. The environment must be such that the people get incentives to move out from their rented houses and purchase their own homes.
Grant of Industry status & Access to Single Window Clearance
While the bold move of demonetisation acted as a key lever for transformation and bringing efficiency to the Indian Real Estate sector, now it is high time that the sector receives industry status and gets access to single window clearance. The Union Budget 2017 can be regarded as a dynamic platform for the same. In an aggregate sense of term, the Indian Real Estate sector is the second largest contributor of India's GDP. In the absence of industry status, pressure is imparted on the developers to borrow at higher interest rates, which sometimes directly or indirectly retards progress of construction. Provision of an industry status would provide potential leeway to aggravate builders' borrowing potentials at competitive rates from financial institutions and the benefits would be passed on to the end-users. The affordable housing segment in particular would receive a latent thrust. The demand for implementing Single Window Clearance has been quite evident. For timely execution of projects and also to ensure absolute transparency in the approval processes, the sector must come under the umbrella of a Single Window Clearance.
GST & REIT Clarifications
While the much anticipated GST (Goods & Service Tax) Bill is poised to bring tax uniformity, reduce complexities in the tax structures and help the developers to streamline constructions by lesser input costs, there must be further clarification on the part of defining which part of the sector falls under the goods segment and which part falls under the service segment, as this would help in determining the final rate that is going to put wider impact on the sector's functioning. The developers also want clarifications on tax credits under GST. Removal of MAT (Minimum Alternate Tax) on SEZ (Special Economic Zone) developments is also expected from the upcoming budget. The commercial real estate sector is going to receive a dynamic facelift from REIT (Real Estate Investment Trusts) listings. While the mechanism of pooled investment under REIT is poised to trigger fund accumulation, utilization and maximize returns for investors with diverse portfolios, relaxations and clarifications on this front are also necessary. The Government must also pay heed on reduced taxation levels for REIT income and waive off service tax on leasing activities.
Success factors for RERA
It is a fact that beyond reasonable doubt, the RERA Bill has fuelled consumer confidence and trust. However, the Government must put in place effective norms or establish an environment that would be conducive to helping the developers stick to their commitments and ensure timely deliveries.
The upcoming Union Budget is expected to dovetail transformation, bring pragmatism, establish standardisation and enable necessary relaxations to accelerate the growth pulse of the Indian Real Estate sector. Let us keep our fingers crossed and hope for the best.