It was like a well rehearsed script last year. Builders last year complained about poor sales and the general absence of enquiries. For the smaller builders it was a traumatic experience with many unable to handle the financial pressure. Many small builders exited the business. These small builders comprised people who had worked with larger builders and gained experience on the job. The absence of suitable systems did not help either. Many of these builders were unable to plan their expenditure and fell short. Unable to complete their projects, they either raised their hands up towards the sky or sold out. Others talked of exiting the business in the near future and remaining in the business to just deal in land. They would buy land from owners, sort out the paper work and sell it at a healthy profit to interested builders. The year was also dominated by GST and the after effects of demonetisation. This year is expected to be different. The bounce may not there but there is a discernable difference in the mood.
Desh Prabhudessai, president, Goa Chapter, CREDAI felt it would improve this year. He said “We are hopeful, everything is in place. The website will be up and running next week and registration will commence shortly. Yes, things are at a standstill but we look into the future, we see movement. The apprehension of last year is dissipating.” The decision by the government to give housing to all would also help. The scheme for affordable housing would encourage the economically deprived to look at moving in such housing which help builders, he said who were operating in that space. This year, he said would be different from last year.
Another builder who did not want to be named said the situation would improve in four to six months. With RERA set in December and the website set to go online next week, the situation was improving. The effects of demonetisation and GST were now absorbed by the system and everyone had a greater understanding of the implications of GST. The push towards affordable housing would drive up business. Now with RERA, customers had greater confidence when they went around looking to buy property.
Sunil Datwani of Datwani Developers felt business would be much better this year. He said “everyone understands the implications of GST though I believe it is on the higher side because with the registration and all the modalities done it works to well above 20%. It should be looked at. With the website going online next week, it will move. I expect several new projects to be announced this year.”
Perhaps the last word should go to Denzil Xavier, President, Goa Association of Realtors who felt with everything being streamlined with the launch of the website next week, business would start picking up. Mr Xavier said “Customer confidence has increased now with RERA in place. Interest rates are down and realty prices did not increase in 2017 and it cannot really increase anymore. With registrations starting yet again from next week, I expect builders to start announcing new projects which will allow interested buyers to cherry pick. The market will start recovering this year.”
This sector is the highest revenue earner of the government and they will hope this sector perks up. Balancing the books in a depressing market is not an easy task.
