By: Ravi Sinha
Finance Minister Pranab Mukherjee has urged the real estate sector to be sensitive to the purchasing power of the poor while pricing their housing units.
Speaking at the 10th national convention of the Confederation of Real Estate developers” Association of India (CREDAI) in New Delhi on Dec 16, Mukherjee also called for greater integrity in development, construction and marketing or real estate business.
“The realty sector has to be sensitive to the larger social dimension of housing by pricing their products appropriately, responding to the cross section of housing demand, covering the rich and poor alike and, above all, anchoring its work in strong ethical practices,” he said. Mukherjee said the realty sector will have to bridge the gap between construction technology, consumer”s need and affordability of the product.
“I would place the desire to own a house or the need to have a roof over ones head as one of the basic desires of an individual or family…However, the task of meeting this desire cannot be seen purely in terms of a commercial venture.
There is a larger social dimension to it…,” he said. “…in India the sector has huge scope for employment generation, for urban renewal and rejuvenation, which have direct implications for poverty eradication,” Mukherjee added.
The Finance Minister said that the country”s national development and poverty reduction efforts will be determined by the productivity of urban areas, where 28 per cent (30 crore) of India”s population lives. “The next 25 years should see the urban population living in Indian towns and cities doubling…In such a scenario, it is important that we plan carefully to meet the challenge of housing shortage and urbanisation comprehensively,” Mukherjee said, adding that CREDAI has an important role in the process.
Citing government programmes like the Jawaharlal Nehru National Urban Renewal Mission and the Rajiv Awas Yojana, the minister asked the private sector to join hands with it. “Fulfilling the dream the dream of housing for all is an enormous task that the government alone would never be able to meet on its own. The private sector”s role is crucial…The real estate developers have to play a leading role in supplementing the efforts of the government,” he said.
The Finance Minister said developments in the real estate sector during recent past offers scope for integrating the business. “Events in our recent past and lessons from elsewhere in the world suggests that there is scope for greater integrity in development, construction and marketing of the real estate business in the country,” Mukherjee said.
Minister for Housing, Urban Poverty Alleviation and Tourism Kumari Selja also asked builders to focus on low-income housing projects as 98 per cent of the country”s total 26 million housing units shortfall are in this segment.
Stating that it would not possible for the government to shoulder the burden of such magnitude, she asked private players to join in the endeavour of ensuring housing for all.
