Zee Media Bureau
New Delhi: For the past some time, real estate market has been struggling to make profits for a variety of reasons. However, in the last quarter, both Central government and State governments have taken some landmark decisions which have sent hints that “achhe din” for the realty markets are around the corner. A section of market experts believe that profitability is set to seep in this sector very soon.
Here are the major reasons:
1) Reduction in circle rates
Recently, Haryana government has reduced the circle rates in Gurgaon and Faridabad by 15 percent. Similarly, Uttarakhand government is planning on the same lines.The Real Estate Act has already come into force from May 1 this year. Even Confederation of Real Estate Developers' Associations of India (NCR) has written a letter to the Uttar Pradesh government requesting not to increase circle rates in Noida, Greater Noida and Ghaziabad. These developments will surely give a much needed boost to the realty market.
2) Model Shop & Establishment Act
Seeking to provide greater flexibility to retailers, banks, shops as well as malls on various issues including the timings of opening and closing of shops throughout the year, the Union Cabinet on Wednesday cleared the Model Shop & Establishment Act. The retail outlets will be open 24x7.
The Model Act would bring uniformity in the legislative provisions, making it easier for all the states to adopt it and thereby ensuring uniform working conditions across the country.
At present, states have their own legislation which regulates shops and establishments like their closing and opening times, holidays and working shifts of women. With this pick up in sales retail sector will also find acceleration.
3) 7th Pay Commission
With implementation of 7th Pay Commission, government employees will surely spend more in purchasing real estate properties which will prove beneficial for the sector.