The last few years have witnessed increasing focus on the affordable housing segment.It remains a key segment for the Government towards its mission of ‘housing for all’. To provide further impetus to affordable housing segment, the Government has sanctioned over 81 lakh homes under PMAY Urban scheme with an investment of about 4.83 lakh crore.
Singapore investors are betting big on Indian commercial real estate and other new sunshine sectors, including logistics and warehousing. Major Singapore-based private equity firms are funnelling billions of dollars into the country’s real estate sector, particularly in South Indian cities.
This policy ‘trishul’ brought about a paradigm shift in the way Indian real estate does business and laid the groundwork for improved transparency and efficiency in the sector. However, while end-user and investor confidence were rekindled for real estate, it did not exactly set the industry on fire with renewed interest.
The Indian residential market volumes spiraled down in terms of demand and supply almost every successive year in this decade. From a high of 480,000 units in 2010, the supply last year stood at mere 103,000 units across the top 8 cities.
The Indian real estate market has always been notorious for its lack of transparency, and the changes in recent times has been less than desirable. As India aspires to get clean money into the sector, the foreign funds too have high standards in terms of service quality and clarity.
ASSOCHAM has urged the Government, National Company Law Tribunal (NCLT) and the Insolvency and Bankruptcy Board of India to treat homebuyers in real estate projects at par, if not above banks in the pecking order, by providing a separate carve-out for those stuck in the incomplete construction, and any legal hurdle should be immediately removed, by a Presidential Ordinance, if need be.
Nothing hurts Indian real estate more than their inability to connect with the consumers and showcase them was is their legal right. The seeds of lack of trust in the minds of the buyers are sown at the time of booking itself as the developers do not find it necessary to showcase approvals, even when asked to, and it continues throughout the construction lifecycle.
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Track2Realty Exclusive: As the country faces problems over land acquisition, events around the issue have been tarnishing the image of India’s built environment. Across sectors — real estate, infrastructure and construction events have not been conducive enough to create a good environment for investments. In addition, fragmentation and irregularities within the market, instances of fly-by-night-operators duping the consumers, an absence of regulation over transactions and developers have given a bad name to the environment.