Network For Property People

The Narendra Modi-led NDA government has taken charge of the country and its economy, and we are now looking at the very real possibility of issues that have been plaguing the Indian real estate sector - such as delayed projects, legal quagmire, lack of project funding and transparency shortfall - being proactively addressed. Very importantly, the new government has also announced a very clear mandate in terms of promoting affordable housing.

The Indian real estate industry is now replete with hope that the new government will be able to re-establish the country as an economic force, increase consumer confidence and unravel the policy paralysis as well as other bottlenecks that are preventing economic growth.

In the upcoming budget, the real estate sector is hoping for the announcement of progressive new policies pertaining. Here are some of the issues that need immediate attention.

1. FDI in real estate: The sector is in serious need of liberalized funding flow. Global investors are once again enthusiastically eyeing the Indian market for the immense opportunities it offers.

There is now a very real possibility of a huge increase in foreign investment inflows, and the budget is definitely the ideal opportunity for taking serious steps to encourage this.

2. Preferential Industry Status at least to Housing: We once again reiterate our sincere call for the real estate industry to be given preferential industry status on the lines of infrastructure.

Despite many petitions from the sector to the government to this effect, real estate was not been granted industry despite the fact that it is a significant growth driver for the economy, generating countless jobs and directly catering to the needs of individuals and the businesses in which they work and which they patronize.

Even if industry status for real estate as a whole is not on the charts, housing definitely needs to be given infrastructure status. Housing is infrastructure in the truest sense, as it deals with building the very framework of the nation and its economy.

It needs the benefits of this status so that the national housing deficit can be lowered.

3. Steps to Tackle Inflation: The sector also looks forward to the budget outlining proactive measures to tackle the serious issue of inflation, as interest rate rationalization is a must so that home sales can pick up again. In the current scenario of high inflation, affordability of housing for consumers as well as profitability for making housing available for developers are some of the major concerns. Over the past 2-3 years, a significant segment of prospective buyers have consistently shied away from the commitment of home purchase because of financial insecurity and general market negativity brought on by high inflation.

The stock markets have already picked up and the Indian rupee is gaining value once again. We certainly expect that the new government will take measures to reduce inflation, but also ensure that this is not done at the cost of the green shoots of market positivity we are now seeing.

4. Plan '100 smart cities': It is logical to assume that the new government will follow up on its electoral mandate and make specific announcements regarding the creation of 100 smart cities, which will be a game-changer for the next generation of Indian infrastructure development.

Specifically, the government will need to address the following aspects: Utilisation of networked infrastructure, including business, housing, leisure and lifestyle services as well as information and communication infrastructure (ICT) to improve economic and political efficiency and enable social, cultural and urban development, application of strategy to increase local prosperity and competitiveness, social inclusion of various urban residents in public services and an emphasis on citizen participation in co-design while emphasising social, environmental and economic sustainability.

 Other important calls to take are on faster approvals for affordable housing projects, an upward revision of the cap on priority sector housing loans and the implementation of GST, which will have very favourable implications for real estate in India.