By: Irfan Razack, CMD, Prestige Group & Chairman, CREDAI National
As far as the industry is concerned, we have been facing certain challenges like the new TDR regulations. There’s also the RERA bill, which is likely to get notified very soon. The GST laws will get notified in the next few months as well. So the industry is looking at a series of new laws that need to be complied with. Apart from these, there is also the new National Green Tribunal (NGT) order that has come in. The NGT order includes new regulations for approval of plans of projects located near lakes and nalas.
While the industry was grappling with these new guidelines, the month of November witnessed one of the most disruptive moves made by the Government of India – the demonetization of the large denomination currencies. Though we fully endorse the move, its sudden announcement created both baseless rumours and panic among customers initially. This made them wary about investing in homes for some time. Fortunately, with things settling down, we are once again witnessing activity in the market, though it has yet to reach its full momentum. We, at Prestige, wholly endorse the move made by the Prime Minister. We believe that it is a single rare opportunity to clean the system and start a new regime altogether, and hence this move should be supported by all.
As far as retail is concerned, there is still a major requirement for good retail spaces and this sector will continue to do well.
With regard to office space, since the supply has dried up, there are no further vacancies. The new buildings that are ready are getting occupied instantly because there is limited supply available in the market currently.
Hospitality is a function of how the Government drives tourism and business in a city. I believe that with time, hospitality assets will perform better and better, year on year. Bangalore has the distinct advantage of being a preferred destination for both conventions and conferences. Hence, I see the hospitality industry thriving here.
Source: ET Realty