The realty industry is placing a great deal of hope in the new Narendra Modi government. The NDA made three major promises in its manifesto with direct relevance to the real estate sector. These were the development of 100 new cities; putting a new land use policy in place; and planning for low-cost housing.
The industry can expect revitalised funding, with FDI in real estate expected to get a lift. Global investors appear optimistic. The urban development ministry is expected to allow foreign investment up to 49 per cent, free of all conditions.
Second, the industry can expect fast-tracked infrastructure projects. The completion of projects such as the DMIC (Delhi Mumbai Industrial Corridor) and the DFC (Dedicated Freight Corridor) could mean development of many new cities across the belt of these projects. These massive on-going infrastructure projects will lead to a huge demand for warehouses, thereby giving a significant boost to warehousing and logistics-related real estate demand.
What the industry wants:
Reversal of the land acquisition act
Clearance of pending receivables to the private sector via fast-tracked bureaucratic decision-making
Provision of fiscal stimuli to improve industrial growth
Creation of investment-friendly real estate market via lowered interest rates and increased employment generation.
What developers want:
The new government will expedite the process of granting regulatory approvals.
The Real Estate Development Regulation & Development bill, which has been lingering for quite some time now, will be passed
The new government will ease land acquisition parameters so that availability of land is no longer a major constraint, which has led to highly escalated real estate cost.
