Real estate sector is the key driver in building the economy and it has moved on from need-basis to lifestyle choice, leading real estate figures in India have said.
Speaking at the recently-held ASSOCHAM National Conference on Changing Dynamics of Real Estate for Viksit Bharat, Sanjeev Kumar Arora, Member- Haryana RERA, discussed how this sector is serving to the country’s economy and is contributing to social satisfaction on a larger level.
Real estate sector has emerged as the key driver in building the economy and is the largest employment provider, which is 4 per cent of the population in India, he said. He added that the total FDI investment growing at 20 per cent by 2025 and that rapid urbanisation, smart cities, housing for all and FDI regulations relaxation will also boost this sector.
Arora further talked about RERA Act 2016 that the government introduced to bring transparency in the sector.
“About 1,25,000 projects were registered under RERA in pan India since enactment. Complaints have been reduced significantly. A PPP model is introduced that focuses on greater projects for more disciplined and long-term growth. There is a need for rationalisation of lending rates so that more people can come forward and builders are happy to deliver at least possible cost,” he said.
In his welcome address Pradeep Aggarwal, Chairman, National Council on Real Estate, Housing and Urban Development, ASSOCHAM and Chairman, Signature Global (India) Ltd also shared what is needed to achieve the goal of Viksit Bharat by 2047.
“The vision is that every family will have a home and job opportunity as this sector is crucial to make India top economy. Real Estate is a 24 lakh crore market, and its GDP contribution is around 13.8 per cent,” he added.
Under PM Awaas Yojna, 3 crore houses in rural areas are built and with government reforms like Credit linked subsidies, GST, RERA regime, he said, adding that under RERA after 2017,86 per cent of projects were launched and delivered on time.
Also speaking at the event was Vineet Relia, Director, Urbanbriq Development Management Pvt Ltd, who talked about changing dynamics in the real estate sector.
“There was a time when the real estate sector used to thrive on a need basis but now it has shifted to upgradation and lifestyle choices. This made a huge impact on the developers to meet the demand with high end quality and gearing up for delivery time. There will be a downcycle if the government doesn’t support this sector in coming years with regard to affordability,” he said.
Sonal Mehta, Sr. VP-Strategy & Alliance, Resurgent India Limited also shared her insights on growth perspective of the sector and how challenges of the field to be addressed with the right policies and reforms in the coming years.
The rising concerns about weather conditions in major metropolitan areas like Delhi NCR and Mumbai during the rainy season were brought up by Gaurav Jain, CEO of India Projects at Infracorp (Bahrain). He also discussed how infrastructure development plays a significant role in mitigating these scenarios with appropriate drainage systems. Infrastructure has become less important, and maintaining market standards and engineering foundations is crucial.
A joint knowledge report was unveiled by ASSOCHAM and Resurgent India Ltd titled ‘’Changing Dynamics of Real Estate for Viksit Bharat- Opportunities and Challenges’’.