Indian real estate – the second largest employment provider in India, is now in need of some key changes in the year 2014. Real estate developers as well as experts believe that, if the government could take care of some factors of the sector, it will be beneficial not just for the developers but also for the home buyers. So, what are they !!!
Come lets know about those factors and how these can affect the home buyer as well as industry?
Improvement in the Economic Conditions – Considering the current economic scenario, a stability is being desired. Also, changing job market scenario will lead to increase in the number of white-collar jobs and so the demand for housing segment will continue to rise. As hot destination for real estate investment, many Tier-II cities are emerging. No doubt, economical homes can help in ensuring that each and every citizen of India gets to fulfil their dream to own a home, if not in big cities, then in the suburbs or city outskirts.
Single Window for Faster Approvals – It takes a real estate developer about a year to get all the approvals in place before beginning the actual construction process, with the current approval system. So, its need of the time now – Single window clearance and faster approvals from government authorities. With faster approvals, we will be able to deliver the end-products to our customers faster than the current scenario.
Affordable Land Parcels – Land cost is rising and is making it difficult for the developers to offer affordable homes. They feel that if the land is made available for them at reasonable rates, it will lead to a reduction in the cost of the housing project, thereby benefiting the end customers. The road to affordable homes will then be clear.
Availability of Loans – Availability of working capital loans, including that for land purchase, at reasonable rates of 10 -12 per cent will reduce the number of defaults in the real estate sector. This will ensure that the project meets its deadlines and the home buyer gets possession on time.
Infrastructure Development – Better infrastructure facilities lead to the emergence of newer and bigger real estate pockets in different cities, as is the case witnessed in Gujarat’s Surat and Karnataka’s capital city Bangalore. Infrastructure projects, such as expressways, flyovers, Metro or Mono rail benefit the real estate market a lot. With improved infrastructure facilities in the area, the home buyers get a better return on investments.
Apart from this, with the general elections coming up, developers also hope that the government will formulate policies that will strengthen the economic conditions. Industry also hoping for relaxed FDI regulations, thereby allowing for the industry to boom and be privy to the latest developments world-wide. In 2014, we can hope, a lot of these factors may improve along with the global economy getting better. We can also hope and expect the government to take cognizance of the long-pending demand of the real estate sector like industry status that will certainly resolve issues such as affordability in the market.
It is interesting to see that the developers are voicing out their expectations from the year ahead. Let us see how many of these expectations of the real estate developers are finally met, ultimately benefitting the buyers.
Source: Electronic Media
Alok Kumar Upadhayay