At the two day conclave organized by CREDAI in New Delhi, on the theme of 'Housing, the game changer-leading to double-digit GDP growth,' all the eminent speakers present seemed positive about the real estate in 2014. However, they added in the same breath that the government needs to focus on the sector and take up measures to aid real estate development in the country.
Showing his concern in this regard Rohit Gera, MD, Gera Developments Pvt Ltd says, "We expect the sector to bounce back in the coming year overcoming the current sluggishness that has plagued the industry for quite some time now. However, this would not be possible without the support of the government. As of now, real estate is not the priority for the government. They are more focused on slum rehabilitation." He was addressing the huge gathering of real estate experts and media persons attending the conclave.
"We all know the problems and solutions," adds Gera, "but what is lacking is the proper implementation of the same. In addition to solutions such as fast approvals and relaxation in FSI, Foreign investment should be allowed in India."
Others were also equally enthusiastic about the future of real estate in the coming year. "Currently, due to general sluggishness in the market and political instability, the market sentiments have gone down. This is exactly what happened in 2008 as well. However, India was one of the first countries to bounce back within six months. We expect the same thing to happen this time round too. Indian real estate is expected to bounce back in next six to eight months," exclaims Vijay Mirchadani, Hon Secretary, CREDAI. He also felt that the end users can capitalize the present situation buy now before the prices escalate.
Speakers also highlighted the need for affordable housing in the country, which, in spite of all the efforts, has not taken off as per the existing demand. "We have been doing a lot of work in Noida and Greater Noida. Nearly 90 per cent of the demand is for affordable housing and only 5-10 per cent constitutes the luxury segment," states R K Arora, MD Supertech.
However, affordable housing is only possible if the government offers help to the develop community. Apart from regulatory measures, steps such as added FSI and financing construction cost are required from the government’s end, the experts.