M. Venkaiah Naidu, Union Minister for Urban Development, Housing and Poverty Alleviation, asked builders to keep their "promises of delivery" to their customers and maintain highest transparency in their dealings as the government has started several reforms to boost the real estate ecosystem.
Addressing the annual convention of realtors' apex body, the Confederation of Real Estate Developers' Associations of India (CREDAI), Naidu expressed concern over "skyrocketing" land prices in some major cities and said price corrections would be required to make housing affordable for all.
"The sector is raring to go ahead and the government policies will be a game changer as these will bring in a culture of transparency. We have initiated new regulations such as the Real Estate (Regulation and Development) Act (RERA) and Goods and Service Tax (GST) that will do away with the industry's legacy issues and bring in a culture of character, credibility, confidence and cash. The granting of infrastructure status to affordable housing will go a long way in providing shelter to India's vast population," he said in his inaugural address.
The real estate sector has been reeling under prolonged slowdown over the past four years. The sector, which generates 6 per cent of India's GDP, is expecting a rise in demand due to key reforms such as GST implementation, digitisation of payments and the RERA that are likely to see significant consumer trust. The government has also given infrastructure status to affordable housing, which is likely to be the biggest booster in reviving demand.
Getamber Anand, President of CREDAI, said the government has recognised the value of real estate and its contribution to the economy as it employs over five crore Indians. It also contributes by extensively sourcing from a vendor chain of 10,000 factories, which is fuelling the country's manufacturing sector, he said.
One of the key demands of the realtors is to keep the ongoing projects exempt from the new realty law RERA, which they said should cover only new projects.
Indian yogi Sadguru Jaggi was also invited to the event and shared his sermons on how to deal with the challenges of life. He asked the builders to change from within instead of raising the issues with external agencies and the government.