The spill-over effect of demonetization, implementation of the Real Estate (Regulation & Development) Act, 2016 and the Goods & Services Tax - a triple ripple - had a dramatic impact on Indian Real Estate Sector in 2017. These three consequential reforms invited a complete overhaul in the property sector, its form and practices. Now, with the dust gathered by the RERA and the GST settling down, the realty sector is on the verge of incarnation and ready to embrace 2018, but with full of challenges & opportunities.

The year 2018 is set to begin on a 'carry forward' note, where the unsold inventory accumulated in the third quarter of 2017, around 685,000 units in seven cities, due to sluggish demand. The year may help in easing this gradually, as consumers are turning back to the sector with time correction and lower interest rates. The price easing factor due to the 'triple ripple' effect rescued the developers to cope up with the pressure of unsold inventories to some extent, but with no further price corrections anticipated in2018.

A 'Developer' dominated market is turning to be a 'Customer' dominated market as the RERA has empowered the buyers with multiple rights. The factors like transparency in dealings, mandatory timelines, risk-free mechanism to protect financial and fiduciary interests of the buyers will ensure a fair play. The home buyer, who was sitting on the fence due to uncertainties related to deliveries and no recourse available against builders, has gained confidence thanks to RERA.

Due to a lack of transparency and credibility, the sector was struggling to get 'clean capital' from financial institutions and institutional investors that paved ways for raising capital through illicit ways. Now with transparency and project approvals in place, a credible developer can now raise finance in a clean way.

Residential prices will mostly remain stable in the early quarters of 2018. Past couple of months, there hasn't been a significant correction in prices as far as the primary market catalogue rates are concerned. While builders have been offering incentives for long, they have also been negotiating discounts with prospective home buyers to ensure faster deal conclusion. With some rationalization in the secondary market too, the momentum of sales and new launches may accelerate.

The RERA has underpinned a wave of consolidation in the market. Strict compliance and transparency regime, adherence to quality and project timelines, etc. will force many unorganized developers shut shops or transfer the businesses to developers with sustained credentials. Home buyers' and lenders' rise, subsequent action by the courts and the government against builders like Unitech, Jaypee Infratech and Amrapali is an indication as to how business environment is changing. It will accelerate the pace of consolidation and the sector will witness a class of organized or branded developers emerging strongly across project categories. Many incomplete, long-hauled projects stuck due to legal or financial intricacies may see handovers to organized developers. The merger & acquisition experts foresee many buy-outs, mainly by top league developers, in the year 2018.