A Promising Year for Real Estate: Experts Foresee Growth Driven by Government Policies
Real estate professionals believe that 2013 will be a significant year for the sector. They highlight the importance of the recently implemented policies and their potential to drive remarkable growth. The effective implementation of these policies is crucial for the sector to achieve new heights. The end of 2012 saw the introduction of several real estate-friendly policies, and the focus in 2013 is expected to shift towards their proper execution. This proactive approach by the government has placed the real estate sector on the cusp of significant advancement.
Transparency and Transformation in the Real Estate Landscape
Sukhraj Nahar, Chairman and MD of Nahar Group, stated that the real estate market is undergoing a period of transformation, observing increased transparency throughout 2012 due to collective efforts from every involved participant. "He expects that the government will initiate necessary steps to boost the real estate sector."
Nahar anticipates that the government will take further steps to stimulate the sector, specifically recommending a single-window clearance system for projects. He emphasizes the necessity of an RBI rate cut to revitalize the sector. Furthermore, he advocates for government policies that would enable real estate builders to access bank loans.
Government policies play a crucial role in stimulating the real estate sector, provided that they are implemented properly. According to Samujjwal Ghosh, Marketing Head of Lodha Group, the real estate sector is rebounding, due to the implementation of supportive government policies. He observed that both the economy and the real estate sector are showing positive signs of recovery because of these initiatives and policy implementations by the Government. The reduced interest rates have also played a vital role in the economic resurgence. The Indian economy, which witnessed a downturn from the latter half of 2011 throughout the latter half of 2012, began to recover in the early months of 2013.
Addressing the Demand for Housing: Floor Space Index and Building Taller Structures
Discussions regarding Floor Space Index (FSI) regulations have also been prominent. Some developers have proposed an increase in the floor area ratio (FAR) to accommodate the construction of higher buildings, addressing the demand for houses in limited spaces. CREDAI’s Kolkata wing emphasized the growing necessity for taller residential buildings to fulfill the escalating demand for housing in high population density areas.
Collaboration and Affordability: A Joint Effort to Revive the Sector
Lalit Kumar Jain, CREDAI’s national chief emphasized that the government and the RBI must collaborate to revitalize the real estate sector. CREDAI suggested that the finance ministry and housing ministry should also work together to facilitate the provision of more affordable housing options. Mr. Ghosh highlights Wadala as a prime area for real estate investment, citing its proximity to key business districts such as Bandra Kurla Complex.
Wadala: An Attractive Investment Destination
Wadala's robust connectivity, underpinned by its access to Metro, Monorail, and Freeway networks, makes it a highly desirable location. Ghosh further announced that the Lodha group intends to proceed with its pivotal City Center Project at New Cuffe Parade.