The new government might push through reforms, help realty sector
Real estate in India plays the role of a central protagonist, contributing towards growth and development of the economy. This statement can be testified by the fact that the housing sector steps in with a crucial contribution of 5% of India’s GDP, and as per the proponents of the industry the next 3-5 years will register an increase to 6%. Like other crucial sectors of the economy, the Indian real estate market also is looking forward to a strong Government at the Centre, which will push the reforms and rope in handsome investments.
However, experts are of the notion that even if the new government comes up as proactive and brings to foray the ‘can do’ attitude, gaining political stability will not be a walk in the park, since a set of duties are set aside for it. Hence, this highlights the obvious fact that the sector will have to hold on to its hope of fully leveraging the proactive reforms and reaping the benefits of political stability. Given the present scenario, there are a set of regulations and initiatives related to the sector, which are required to be fast-tracked and put into effect, however, this will not be a piece of cake.
Challenges awaiting the upcoming government
Of all the challenges for real estate in India, the enacting of the long-pending Real estate Regulatory Bill tops the list. It is expected to make the sector more attractive, thereby sweeping off the feet’s of the members of the housing fraternity. Regulations regarding FDI in multi-brand has been a subject which has drawn a good amount of political flak.This would maximize India’s attractiveness by foreign heavyweights as a major retail real estate destination.
Initiating a faster project approval process is an another big hurdle for the sector, which is yet to pan out. Although the demand of developers and builders have been pitching in for a faster project approval process for quite sometime now, the task is literally challenging. Approval of the process is likely to cut down the prices significantly and hence, squeeze in a breath of relief among the buyers.
Field is set for the new government
Several overseas investors have turned down the proposition of investing money in real estate in India, on account of lack of transparency, bureaucratic muddle, absence of regulations and political uncertainty. Now, for the new government, the field is set to make changes and shape the sector into a profitable market for real estate investments, which will be a major aid dealing the financial requirements too. At present, the real estate sector is looking forward for a revival from the new government by enacting of the pending Real Estate Bill and forging investor-friendly policies, which will serve as an energy drink for the housing sector and become a game-changer for the Indian real estate market.
