The real estate sector is one of the most prominent and profitable sectors across the globe. Entering this sector means several job opportunities. When it comes to India, then it contributes approximately 6-7% of GDP country.
However, there are numerous challenges occurred in this sector. However, all you need to do is when you make the mind in entering this field, then you should also know the challenges. In addition to it, here is a list of some challenges that you may face in the real estate industry.
- Delay in the completion of the project
Sometimes, you may experience a delay in the completion of projects. The reason can be insufficient funding. The finding is that you will have to take permission from different agencies to establish the project. There are some chances that you may not get permission on time.
- Tax and shifting of demand
Shifting and tax are the two most difficult challenges that usually broker faced. However, when the GST is implemented, then this sector faces several challenges. For instance, the tax was 4.5 percentile before implementing the GST.
After the implementation of GST, the service tax is rise to the 12 percentile. Due to the increment in the tax, masses shift their interest too.
- Outdate building bye-laws
Due to increment in the population, the demand for space also increases. Now, most of the population lives in the cities, and this ratio will be enhanced. In addition to it, as per the FSI norms in the cities are not on par, including the increment in the demands of consumers. The term FSI stands for the Floor Space Index. Moreover, these outdated building bye-laws also another challenge.
- Land Availability
To some extent real estate sector faces some challenges in the litigated land. Due to land disputes, most property brokers face problems in dealing with it. The issue of land availability can create several obstacles. In addition to it, there are also chances you do not get your desired property.
The majority of developer deals with the one common problem that is funding. The reason behind this is a shortage of industry status. Due to it, they face problems in the affordability of rates. Henceforth, funding is another challenge.
These are five significant challenges face by the broker. Henceforth, it is essential to look for the challenges that you may experience in this field. Henceforth, you should consider this field deeply. Moreover, do deep research in this field to get all knowledge. The more you enter this field more you get knowledge about real estate.
In the end, each challenge has a particular solution. So you can look for alternatives in the field. You will surely get several solutions regarding funding, land availability, and so on.