Much has been said but little delivered REAL ESTATE REPORT CARD
The realty bill is pending and more clarity is required on the smart cities mission and affordable housing scheme
It’s been a year since the Modi government came to power. While the government has taken several initiatives in the real estate space, the outcomes of which will be seen only in the medium- to- long term ( ie two to three years), there is a lot more to be done. There is need for more clarity on the Housing For All by 2022 scheme, the Smart Cities Mission and the Real Estate (Regulation and Development) Bill still remains to be cleared, says a white paper brought out by international consultants JLL.
Power too concentrated Clarity needed on Housing For All by 2022 scheme
After having announced the scheme during the first Budget in June 2014, the government has remained silent on details. The market expected fine prints t o come by i n subsequent communications.
Clarity needed on the Smart Cities Mission No progress yet on the land acquisition bill
There has not been much progress on the bill since the time it was first approved by the previous Congress government, and even after the recent amendments made in the Bill by the Modi government.
The government’s grand vision to build superior infrastructure, affordable housing projects and smart cities is related to the success of this Bill, which could be cleared by the Parliament after recommendations by the joint committee of Parliament come through in the monsoon session.
Realty Bill still pending
Construction delays in many real estate projects are the result of delay in granting statutory approvals. Cost of financing material costs rise exponentially as a result of such delays, and this has an adverse impact on housing prices. The Bill – that the government is currently considering sending to a select committee for review – does not cover the actions of approval authorities and largely attempts to curb malpractices at the developers’ end. As per the JLL white paper, the Modi government could have done more on this front.
Structural safety engineers check damaged buildings in Nepal