Developers fear biggest fall in realty despite booming market
With sky-rocketing property rates and an increase in the demand for residential houses, the real estate sector has witnessed an impressive growth in the recent years. Property buyers are flooded with a variety of options for the best investment from affordable housing to luxurious homes at prime locations.
Amid the realty boom, several developers and real estate experts fear that specific government norms may jeopardise the hold of real estate sector in future.
A builders’ association, including some of the biggest developers of the city, has predicted that the real estate sector will witness its biggest fall ever in future if their suggestions to ease some of the provisions pertaining to the housing segment are not considered.
While developers have praised the implementation of the Real Estate Regulatory Authority (RERA) Act, which rolled out on May 1 this year, they have also pointed out the urgency to create more surpluses in the entire sector.
RERA, which aims to bring transperancy, directs developers to register their projects with them and without which they are restricted to advertise or sell.
The developers also said with the government focusing on improvement of the city’s infrastructure, the real estate sector will witness a massive growth in the upcoming years.
Real estate tycoon Niranjan Hiranandani said at an event that to there is a need to add more provisions in the real estate sector Act in order to increase urban infrastructure and achieve targets of the scheme on housing for all.
Elaborating on the current situation, Hiranandani, president of the National Real Estate Development Council (NAREDCO), said, “There is a need to create more surpluses in the entire sector. Prime Minister Narendra Modi has dreamt of accomplishing housing for all by 2022. The government needs the private real estate sector to contribute but they will have to address all of the issues that are faced by developers. We are happy that the state government has accepted several recommendations made by the builders’ association and addressed a lot of issues. However, there are some more issues faced by developers on a daily basis which needs to be resolved.”
There is a need to create more surpluses in the entire sector
— Niranjan Hiranandani President, NAREDCO