New government will put emphasis on land acquisition
Over the years, land acquisition has topped the list of ‘issues to be dealt with on a priority basis by a government’ to give the realty sector a major boost. The new government in 2014 will be no exception, and will keep the land acquisition issue at its focal point. For the new government, the roadmap is clear that basically land is the main bottleneck to roll out with real estate programs in the country.
Boost to real estate
As per the industry experts, land acquisition is the primary constraint when it comes to project implementation, which requires special attention by the new government. A number of housing and development projects have been put off in the country, owing to land acquisition woes. According to the industry ministry, the need to amend the land acquisition bill and giving a green signal to the single-window clearances will rank high in the ‘to-do’ list of the new government to inject new life in the construction sector.
In a bid to kick-start the realty sector, the government may make some primary changes in the recently-enacted new Land Acquisition Act, to make acquisition of land in the industry a hassle-free and less expensive approach. In addition to it, the new government will also divert its attention on the creation of infrastructure assets, which serves as the major backbone for realty projects. The speed of implementation of the infra-projects will be, however, bank on the state governments.
Housing prices might escalate
Major developers and realtors in the country are of the view that land prices have hit high, leading to a rise in property prices, on account of the new Land Acquisition Bill. One of the key duties of the new government will be to change certain provisions in the new bill in a move to cut down the rising land cost and housing rates. To make matters worse, if the new bill is not amended, demand for housing units in the future will take a toll.
Industry experts quote that the new government will have to prevent the burden of addition cost from falling on the shoulders of the consumers. Demand for housing projects will be adversely affected if price crosses the conventional standards. This will also erase the option of affordable housing for the lower-income groups. As for now, the wait and watch approach is the perfect step to take to see how the situation unfolds for the realty sector in the days to come.
