NEW DELHI: The Centre is working on a model Real Estate Regulation Bill to provide guidelines to facilitate growth and promote a transparent and competitive real estate sector in the country.
Inaugurating a conference on Affordable Housing for Urban Poor here on Thursday, Union Housing and Urban Poverty Alleviation Minister Kumari Selja said the Indian real estate market was unorganised and fragmented, and most property transactions were based on certain perceptions and not necessarily on sound business principles.
Advocating a rating system for builders and developers to bring in quality, Ms. Selja said such a measure would inculcate business ethics in product development and delivery. “Evolving a rating system would bring the customer in the focus and help in building a brand image, besides ensuring a reasonable quality product in a specified time and within the specified price range,” she added.
Ms. Selja said the draft model bill had been sent to the States for their comments and the Government would pursue the rating system after taking all stakeholders into confidence.
In order to enable financial inclusion of economically weaker sections, Ms. Selja said her ministry has constituted a committee to explore, examine and recommend the setting up of a dedicated micro-finance company with the focus on micro-housing finance. Ms. Selja said public housing agencies have been finding it difficult to provide affordable housing options to the poor due to the non-availability of land in suitable locations at reasonable prices, and the lack of clarity on property titles. “The private sector must come forward to take up housing programmes for the poor and low-income groups with social commitments,” she said.
Rental housing was also an important component of affordable housing, Ms. Selja said, stating that it was a feasible and affordable option not only for the poor but for newly-formed households.