In the upcoming Union Budget, the government should focus on steps to accelerate infrastructure development in the country, contends Parveen Jain, Vice Chairman, NAREDCO. He spoke in detail to Nikunj Joshi of RoofandFloor Bureau and shared his insights about the real estate market. Here are the excerpts from the discussion.
What are the challenges that the Indian real estate sector faces as it strives to become more organised?
Real estate, as a sector, has grown by leaps and bounds over the last couple of years. However, issues like delay in completion of projects, lack of transparency, and multiple taxes have plagued the sector for quite some time now. However, the winds of change have begun to blow with the real estate regulator in place.
As RERA has listed out severe penalties for project delays, we will witness a time when projects by credible builders will be completed well within the deadline. Further, being a compendium of rules and regulations, the Real Estate (Regulation and Development) Act will also ensure transparency in the sector.
To tackle the issue of multiple taxations, the Good and Services Tax (GST) was also rolled out this year. In a nutshell, the steps in the right direction have already been initiated. The year 2018 will be important for the sector as the impact of these reforms will be more visible.
2017 witnessed subdued sales and launch volume. Do you anticipate that sales will improve in 2018?
As the after-effects of demonetisation, GST, and RERA are subsiding, improvement is sales in the near future is definitely anticipated.
Considering the current pace of work, do you think the ambitious plan of “Housing for All by 2022” is achievable?
‘Housing for All by 2022’ is achievable as the demand for affordable housing is soaring.
Moreover, recent policy initiatives by the Central Government are remarkable. The government is working in the right direction in terms of achieving the ambitious mission of Housing for All by 2022.
With affordable housing getting infrastructure status, several leading developers in the industry are now venturing into this segment. Moreover, revision of the carpet area definition and infrastructure status has also boosted the segment significantly.
What are your expectations from the Union Budget 2018-19?
In the upcoming budget, the government should focus on infrastructure development and channels to attract more investments and funds to the sector. Click To TweetAlso, the Goods and Services Tax (GST) should be lowered.
Your wishlist for 2018.
We hope that the real estate sector will flourish with skyrocketing sales, and witness tremendous growth and contribute towards improving the Indian economy at large.
