Just over a decade ago nobody would have even thought about the redevelopment. What then changed in the last two decades? Well, almost about everything changed as far as vision about the urban infrastructure and living is concerned.
The most popular way of planning a trip earlier was to visit a travel agency to get your itinerary made. Besides direct hotel reservations, the Central Reservation Systems (CRS) and Global Distribution Systems (GDS) thus served as the primary channels of sales for hotel room nights.
One can also ask the broker about his networks by enquiring about all the areas where he practices. A qualified broker will be able to tap a wide network of other brokers, builders and individuals in a short time. One should check with the broker if he is an authorized agent for any developer.
Today we are looking at a situation where real estate is isolated by the Government as an industry it does not trust. It could be because it is too segregated, too micro for a Government to take note about 5000 developers which are organized under CREDAI.
Land is scarce and the only way in urbanisation is to go up where more FSI/FAR would mean increasing the supply and bringing the price down, goes an old philosophy of the Indian developers. In reality, nearly all the high rises across the Indian cities are high-end luxury projects and seem to fulfil the aspirational needs of the Richie Rich.
Pranay Vakil: The problem is when having sanctioned the loan, there is no fear of revoking it. You can change your mind because these funds are kind of committed. When engage Shapoorji Pallonji or L&T to execute a project, you enter into a contract and you say that this is how we are going to make payments. Suddenly, if you are to switch off the tap, it is going to cause a lot of embarrassment to the developer.
Launching its multi-pronged strategy to focus attention on the real estate industry’s unending series of problems, CREDAI (Confederation of Real Estate Developers’ Associations of India) has decided to send an ‘SOS’ to the Prime Minister and planned for a nationwide developers strike to sensitize the policy makers.
India’s growth story has many facets; one of the integral parts of growth – and arguably the most important one – is urbanization. In fast-growing economies, cities are significant investment and employment generators, which in turn carry the growth momentum forward. The sustainability and livability of any city depends largely on the quality of its infrastructure and real estate stocks. Needless to say, cities also require large sums of money to create urban asset stocks, including buildings and infrastructure.
Atul Modak: Why did bankers’ lobby not block the mutual funds then?
Pranay Vakil: Because the mutual funds lobby is larger than the bankers’ lobby. They could not do anything about it. The companies into mutual funds are so large, they might just foray into banking.
The emergence of the secondary and tertiary cities led to an aggressive increase in hotel development and provided avenues for expansion of hotel brands, which were previously dependent on new opportunities in just the five main cities.