Tuesday, 9 February 2016

FACE OF INDIAN REAL ESTATE TO CHANGE SOON



   India being one of the fastest developing and growing economies across the globe is not leaving any stones unturned to carry this feat for the construction sector as well. Back in 2014, the Modi led NDA government stormed into power with its prime motives being economic development along with an enhancement of citizen’s lifestyle, for which several plans were formed. Food, clothing and shelter contribute towards the basic needs of everyone and the government has already begun its work on the fooding and clothing parts through employment generation and stress on education. To make sure that shelter is made available to all, plans like Housing For All, Smart Cities and AMRUT are already underway.
“Modi government’s plans and work on the housing and infrastructure fronts have been extremely commendable. With the kind of major work carried by the government on the infrastructure front in the last 18 months, it will bring about a huge push for this country’s real estate in the upcoming years along with economic development as well. It is to be noted that, not only has the government made announcements, but has also allocated huge chunk of funds for the work planned”, explains Mr. Vikas Bhasin, MD, Saya Group.
Realty sector at present
This sector that has been reeling under the severe pressure of non-performance for the last few years has finally started to make a comeback. Several factors have contributed towards its revival where investors, stakeholders, developers and the government have worked together. This sector has been a true example where the demand is first created and then the product development and supply makes way. This means that the correct understanding and analysis of the demand is crucial towards the betterment of all. This thought process has always been there in this sector, but never correctly implemented. But off late, developers have started to work according to this model which is allowing this sector to make a strong comeback.
Putting light on the same, Mr. Rakesh Yadav, Chairman, Antriksh India avers “Since late 2008 and till 2012, the demand for housing had taken a blow, the effect of which was such that this sector had started to run on losses. But then came the era where developers worked in accordance to the demand of the market, the positive results of which are becoming prominently visible.” Agreeing to the fact and speaking in sync, Mr. Sudeep Agrawal, MD of Shri Group states “Indian real estate market is coming back on track quite nicely, the credit of which chiefly goes to the change of the developer’s approach towards the customers and their demand. At the same time, revolutionizing decisions take up by the government in the form of infra upgradation and easing the ways of doing business through amendments in FDI for real estate along with a major thrust provided by the RBI last year by reducing 125 basis points has been highly motivational for bringing the sentiments on track.”
There is no denying in the fact that the government is working diligently to bring forth our country’s real estate sector and infrastructure on the global map. RERA, Single window clearance, Industry status, GST, etc. are few such terms which were just heard off earlier, but this time the government is seriously looking into making these dreams real, but only lacking opposition support.
Improvement on the cards
Real estate sector was eagerly waiting for the passage of key reforms in the last two Parliament sessions that went absolutely empty due to reckless conduct by the opposition. It is expected that in this Budget Session, the government will take firm actions to make sure that maximum bills get passed which will bring about the much needed cheer for the sector. “There is no doubt that this sector is gaining back the lost momentum and we are expecting this drive to catch up pace soon. Smart cities mission, Housing for all and AMRUT are clear signals of this growth. Not only has the government allocated funds for these initiatives but these are based on PPP model where private sector will play a vital role in shaping up the country’s infrastructure and thus, gradually pulling the investor confidence”, affirms Mr. Vikas Sahani, CMD, Property Guru.
“It is a great sight for the realty sector to witness the comeback of investors with end users showing better signs of interest. Keeping all these factors in mind, the kind of phase that this sector was waiting for has finally arrived. The only thing now left to be seen is when and how the benefit of this reaches till the rightful stakeholders of this sector, who ultimately are the makers and bakers of this sector”, shares Mr. Rahul Chamola, MD, One Leaf Group.
“For an overall development of a region, it is imperative that the basic infrastructure and connectivity with adjoining regions are met; and here, the public and private sectors are jointly contributing. Apart from this, sustainable, affordable and quality development has become the need of the hour where developers are doing their best to meet this demand and provide the right shelter to the customers; fueled with steps taken up by the RBI last year. All eyes are now on the upcoming Budget Session where the passage of RERA, GST, Single window clearance or even Industry Status for realty sector will bring about the much needed impetus for this sector”, concludes Mr. Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz.

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