By: Lalit Kumar Jain, CMD, KUL & CREDAI Chairman
Track2Realty Exclusive: What Indian realty needs is holistic reforms and for that what is needed is change in mindset. We wonder why every person in office doesn’t realise that his indecisiveness hurts interest of the country. Why authorities are trying to take a pro-publicity and anti-development stand whereby nobody gains?
The current slowdown in the country’s economy has adversely affected the real estate sector in India. Construction activities have virtually come to a standstill even as developers are facing difficulty in selling out the existing inventory. However, real estate still remains one of the most important sectors of the economy. The real estate sector is the second largest employer in the country, after agriculture.
The real estate sector is directly related to other sectors of the economy. The sector has many associated industries. Therefore, investment in the real estate sector has a cascading effect on its associated industries.
Government needs to take active measures to maximise the growth in the real estate sector. Developers have been trying hard to get industry status granted. Such a move on the part of the government will help developers get access to low cost institutional funds.
The laws pertaining to housing projects also need to be restructured in order to provide a boost to developmental activities, particularly in urban areas. Laws like Rent Control Act and Urban Land Ceiling and Regulation Act are highly restrictive and must be abolished.
All efforts must be made to restrict growth of slums in urban areas and develop them into hygienic colonies. There is also a need of suitable amendments in the Agriculture Land Ceiling Act and also the Land Acquisition Act of 1894.
One of the factors that inhibit the growth of real estate sector in India is the lack of basic amenities such as roads, water supply, electricity, etc. Government should make efforts to increase partnership with private sector companies in developing these basic amenities.
The participation of private players in infrastructure sector will, apart from bringing latest technology and management practices, ensure timely completion of the projects.
…..to be continued
