India’s real estate industry has rapidly evolved into an organised sector, riding on the back of state-of-the-art residential and commercial projects. Further, transactions in real estate have also started picking up pace in recent times given the increased demand for office and residential spaces in India.
However, even with the government providing a much needed boost, the ever-changing tax and regulatory landscape in India makes real estate transactions quite complex.
At the backdrop, PwC hosted a series of technical brainstorming sessions on real estate transactions with the theme - ‘Deal dynamics: Real estate skying high’, wherein we invited select tax and business professionals for a closed group discussion along with PwC experts. These were attended and well appreciated by CFOs, M&A leaders and senior tax professionals.
|Ahmedabad||To be announced|
Riding on the back of the strong overall economic growth that India is witnessing, the real estate sector is poised for unprecedented growth. Studies expect the market size to be 1 trillion USD by 2030 (from the 2017 levels of 120 billion USD), contributing 13% to the country’s GDP by 2025! Unparalleled economic development combined with the government’s ambition to provide housing to all are strong signals of renewed focus, which will attract attention, investments and transactions from investors on a global platform.
There has been select activity in micro markets and in smaller metros in the real estate sector. While RERA, GST, affordable housing and other incentives have given the industry a pause to reconsider their business models, one would expect government intervention for giving the necessary push to attain growth in order to boost M&A activities in the sector.
Introduction of RERA, revenue recognition under Ind AS, complexity under GST, taxability of income from leasing of properties and other changes are keeping real estate entities on their toes. Each change has manifold impact on the entity requiring review of business models, entity structuring, optimisation of operations, cash flows planning, fund raising etc.
National Leader, M&A Tax, PwC India
Tel: +91 22 6689 1255
Partner, M&A Tax (North), PwC India
Tel: +91 124 330 6018
Partner, M&A Tax (South), PwC India
Tel: +91 80 4079 6008