WHAT THE REAL ESTATE SECTOR EXPECTS FROM THE NEW GOVERNMENT
India’s biggest elections are finally approaching to an end. The long and most awaited judgement day has finally arrived. Real estate sector is considered to be the most important sector for the economic growth of the country as it contributes the most in the Indian GDP and provides maximum job opportunities. Thus, it becomes imperative for a government to keep a track of this sector and hear to what demands they have.
Mr. Sushant Mutreja, CMD, Cosmic Group
Looking at the current economic condition, expectations are high on several fronts from revival of economic growth to fixing the uncontrolled inflation and curbing the inflation rate and unemployment within a few months of taking over of new government. Due to the polling season, the real estate market had dampened, as most of the buyers and investors were playing a wait and watch game. Once a new government is set up; new & pending policies and bills such as land acquisition, land pooling policy, real estate bill, etc. will hopefully be passed and some older ones relooked which will provide a much needed moral boost for the buyers and real estate people; then only the sector will start picking up.
Mr. Rupesh Gupta, Director, JM Housing
Real estate companies are fronting the force of high interest rates, tight liquidity, enormous debts and lending curbs. A slowdown in demand means there has been a piercing barb in inventory of late. For investors, it is not all dead and buried, as most real estate stocks are open for as low as a fraction of their book values, making them eye-catching from a long-term perspective. But for a government, key element is providing homes to the masses and at affordable prices. At present, the input or the material costs, such as steel, cement, iron, etc. are sky high which ultimately reaches till the buyers and home loans are at very high interest rates. In total the buyers then go onto pay 30 – 40 percent extra money. The new government must help in reducing these material costs and also decrease the interest rates so that cost of a house must justify the spend on it.
Mr. Arvind Singh, MD, KRasa Group
There is no individual or government that has got a magic wand in their hand. So, it will be most vital to see how rapidly the new government can transform the economy. The groundwork for the new government is been very well laid down by the old government which took a series of positive steps in the past one year. For starters, an area where this sector would like the new government to work upon would be the faster clearances of projects. Moreover, the government must renew its attempts on attracting FDI into the country so as to improve the overall business environment. Also, government must help in reducing the cost burden on the buyers by reducing the home loan rates. All in all, there is a mammoth task in hands of the new government and expectations are greater.
Mr. Kamal Batra, Chairman, Buniyad Group
In order to grow vertically, it is very important for any sector or industry to have a continues support from the government at the centre. The newly formed government must first look into the matters which are of prime importance. Real estate is the highest contributor to the Indian GDP and employment; hence its regulation becomes significant for overall growth. So, forming a government body or giving this sector a status of an industry is vital. Due to recession and poor market sentiments, last few years have been unspeakable as the demand has faded and few wrong doings being highlighted. Forming better policies and norms along with clearing of pending bills will contribute greatly. Finally, controlling inflation rate, developing better infrastructure and aiding with adequate power and water supply at rising real estate destinations will benefit the future buyers and residents.