Real Estate all set to be ‘Modi-fied’: Stable Govt likely to boost sector
As we at CommonFloor.com write this, the BJP led NDA alliance is close to reaching the 340 seats mark and has clearly decimated the Congress led UPA alliance. As D-day heads towards the climax, Sensex has recorded a new high of 25,014.85 while Nifty has crossed 7,400.
With Abki Baar Modi Sarkaar, the real estate sector is expected to be ‘Modi-fied’ as well. Indian real estate market is significantly emotionally driven. With the election dust settling, will the unpredictability prevailing in the sector take a backseat? Well, seeing the Sensex climbing, the answer seems yes!
All the hopes are now pinned on the three major promises that appeared in BJP Manifesto.
* Promise to develop 100 new cities
* Develop a national land use policy
* Plan for low-cost housing
If all these promises actually transform into actions, real estate will surely go one notch up in the coming years. Realty has shed its phase of inactivity and the sector is all set to take a turn for good times.
“We are optimistic about the reforms and the changes this government will bring in to boost the economy. For the real estate in particular, we firmly believe that the sector will be given industry status this time which will ease all fund inflow. Also, we hope the government will take corrective measures to boost FDI into sector,” says Pradeep Jain, Chairman, Parsvnath Developers Ltd.
Reiterating the same, Aman Agarwal, director, KV Developers Pvt. Ltd. says, “the new government will reboot the regulatory framework surrounding real estate and put a mechanism for the fast-tracking of developing project, which will definitely play a positive role to boost up confidence of realty sector. Interests of the stake-holders will be safe guarded and I hope that the new government will initiate support to the real estate sector, not only for quality but also for speeding up of the infrastructure.”
Now real estate industry awaits a robust government, which will make the market viable for sellers and buyers. “The industry has been advocating for a single window clearance system, transparency in government proceedings and reduced cost of borrowing from banks for many years. The consumer is expecting reduction in home loans and rationalisation in real estate pricing. It is expected that implementation of proposed GST framework; tax benefits for buyers and real estate developers will percolate downwards benefitting the end buyer of affordable and mid-income projects. So considering all these factors, we hope the new government will surely rolls out policies favouring realty sector,” hopes P Sahel, Vice Chairman, Lotus Greens Developers Pvt. Ltd.
Developers now expect a renaissance in policy implication. Sharing similar views, Ravi Saund, COO, CHD Developers Ltd says, “Indian real estate is undergoing a marginal growth over a prolong period, we expect a transparent system for the real estate sector and industry status which would baited breath for developers across India. What will matter most to the real estate sector are a hard relook at FDI in housing, REIT legislations and the effective implementation of Real Estate (Regulation and Development) Bill. The role of RBI in easing interest rates or allowing flexibility to reintroduce subvention schemes will also be equally important to decide whether sales and investments see an upswing.”
With stable and ‘functional government’, more than doles, the sector wants delivery. Now the question arises, will this new government infuse positive sentiments among the buyers? Will there be enabling policy measures such as low home loan rates, tax relief on home loans? Will real estate get a technology-enabled single-window portal for the developers? And above all, will the sector get the much-awaited industry status? Well, for all these answers, we need to wait and watch!
