Real estate in partnership with infrastructure has contributed to GDP growth over the years; and it has the potential to help India meet its goal of becoming a $ 5 trillion economy.
Over the years, we have seen how small changes in some aspects lead to significant benefits. The assignment of industry status is one such aspect. To be fair, affordable housing was provided; other real estate segments are also awaiting a “change in status” – and for good reason.
The inclusion of real estate in the number of sectors that have received “industry status” will have a direct impact on the availability of affordable loans.
Inexpensive financing has been the biggest challenge for real estate. Over the years, the problem has evolved and grown, and now we have “last mile funding” for ongoing projects as a separate issue in itself.
The biggest argument in favor of industry status is the low level of non-performing assets in real estate: only 2%. If real estate is granted industry status, GDP will grow, as will jobs and business opportunities; More than 270 ancillary industries will grow; and in India, housing for all will turn from a dream and an initiative into a reality.
Ease of doing businessA: The second aspect that limits real estate growth to its full potential and needs to be addressed is “ease of doing business.” According to the World Bank reports, it has been steadily improving over the past few years; but even here Indian real estate is halfway there.
The situation has definitely improved in terms of time spent issuing permits or getting connected to electricity, but if India is to become a $ 5 trillion economy, there is still a long way to go.
Digitization: Related to this is the digitization of land documents. From land acquisition to title deed, from zoning and changing user status to the number of financial services provided, this is a set of challenges that digitization can help solve.
These are some of the biggest obstacles preventing real estate from playing the role of a GDP growth accelerator. As real estate moves forward in the new regulatory environment under the RERA (Real Estate Regulatory Agency), it is time to also bring transparency and accountability to these bureaucratic processes, where red tape usually causes delays.
Compliance is not something that should be seen as a burden, it should be built into the system. It is the delays caused by these aspects that increase the burden of interest on projects and lead to cost overruns.
Sustainable property: The future belongs to sustainable real estate development. This means that real estate development should be carried out in such a way as to cause the least damage to the environment.
It is necessary to conserve natural resources. Here, real estate development needs to take into account aspects such as wastewater treatment, rainwater harvesting, composting and using waste to fertilize green and landscaped areas, as well as using solar and wind energy to supply energy to public utilities – this should be a holistic way. life.
Inclusive growth: The future is inclusive and diverse. Thus, equal opportunity, encouraging women to take leadership roles, pay parity, and fair and sustainable prosperity will help open access to a wealthy, untapped demographic. The future of real estate must be transformed into a safe and rewarding industry in which people can work, grow and lead.
In addition, the future of Indian real estate will be greener and the focus will shift from simply creating “customer satisfaction” to a situation where the client is also a stakeholder.
The author of the article is the president of NAREDKO.