While Real Estate Regulatory Act has been able to set right some of the shortcomings in the earlier operating structure of the real estate sector, getting timely approvals still remains one of the biggest challenges, thus leading to delays in the delivery of projects/ units to the consumers
The real estate sector has been fighting against all odds of muted demand, distrust among the consumer community, impact of new laws and regulations for its sustainability. The recent situation of credit squeeze has further dampened the progress in the sector. While the government has been taking certain measures to address the situation, however, not all expectations/ demands have been considered by the government in a positive manner. Some of the changes, if done, are likely to have a major impact on the real estate sector and thus, can propel the sector towards the required growth.
The first and the foremost demand is announcing the “industry status” for the real estate sector. Everybody witnessed the impact of granting the infrastructure status to affordable housing. This segment of the housing is clearly on a significant growth path and this could be achieved for the entire real estate, with the above move. This will not only improve the credit availability for the companies operating in the sector, but will also boost the overall sector image.
Another big support required is towards the GST, there is a significant need to rationalise the impact of GST for real estate to make to more attractive and affordable. While the government has been showing signs of considering the proposal, however, nothing has finally been approved.
While Real Estate Regulatory Act (Rera) has been able to set right some of the shortcomings in the earlier operating structure of the real estate sector, getting timely approvals still remains one of the biggest challenges, thus leading to delays in the delivery of projects/ units to the consumers. Having a single window clearance regime is the preferred expectations of both the developers and consumers. This move could go a long way in reducing the time required in construction and giving possession to the unit holders, which Rera has not been able to address effectively.
While the government definitely seems to be keen in pushing the housing sector and some of the government's intervention around affordable housing, Rera, credit linked schemes, etc, have been praiseworthy, but the above expectations for the sector are genuine and could prove to be a significant push to turn around the sector.
The writer is director, Grant Thornton Advisory Private Ltd
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