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Modi Returns, Will The Real Estate Reforms Return Too!

Historically, no other government has done as much for the real estate sector. In just one tenure, Modi set the stage for Indian real estate to flourish in the long-term. However, the key term to note here is ‘long-term’ – all policy interventions were squarely focused on futuristic growth, says Anuj Puri.

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Modi is back! Yes, a month-long festival of democracy came to an end with the verdict going in favor of the Narendra Modi-led NDA government. Remarkably, this time the brand Modi broke its own record and came back with more seats than 2014. Among all, the business community was the one which started the celebration from the morning itself. The Sensex opened with a 500 points rise and crossed 40,000 marks, a first in the history of Sensex.

The real estate sector too showed the jubilation, and why not! being sidelined for long, the real estate sector came into limelight only when the Narendra Modi came into power. The destiny of India’s real estate started changing only when the Modi-led NDA government realized the importance of ‘house’ and thus, tried to put the house in order. As Mr. Anuj Puri, Chairman, ANAROCK aptly describes, ” In retrospect, Modi’s victory in 2014 ushered in a new era of Indian real estate, unambiguously marked by his vision to set the ‘house’ in order. He tightened the Centre’s grip on real estate – the favorite ‘laundromat’ for black money hoarders – and brought speculative activity to an all-time low even as big-bang schemes benefited genuine homebuyers and long-term investors”. It is, perhaps, this reason that all the industry veterans genuinely cheered Modi’s comeback, rather than sharing the routine congratulatory messages.

Now that the Narendra Modi led NDA government is all set to start its second innings, the real estate industry expects it to continue the reformatory measures.  Dr. Niranjan Hiranandani, President NAREDCO, says, “We believe the new government works further for the structural reforms and steps that will boost real estate business and strengthen consumer sentiment towards Indian real estate”. The real estate sector still has some critical issues that need redressal on an immediate basis. The fund crisis is one of them. Dr. Hiranandani further says, “The Indian Real Estate industry is hopeful that the government will redress and resolve the prolonged issue of liquidity crisis that the sector is facing currently. Moreover, rationalizing the taxes by subsuming stamp duty under GST will grand a big relief to the home buyers. We highly recommend the National Housing Policy to boost rental housing in order to fulfill the ambitious target of Housing for All by creating surpluses”.

Mr. Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East, and Africa, CBRE, feels that a stable government is one of the prerequisites of a robust economy and stable policies. Remember, investors always prefer stability in policies. Mr. Magazine says, “A stable, forward-looking government goes a long way in building a robust economy which in turn will further strengthen India Inc.  From policy overhauls to amendments in the older acts to ensure that these acts are relevant in today’s times, the foundations laid down by the Government during its last tenure will bear fruit during this term and will further boost the growth of the country. CBRE is committed to bringing the best real estate consulting services to India and are positive that the elected party will further work towards strengthening the Indian economy and successfully implement the promising schemes and programs.”

One of the reasons for Narendra Modi’s popularity is his style of minimum government and maximum governance. Removing bottlenecks and red-tapism from the business environment is one of his biggest achievements. Such an unexpected jump in the Ease of Doing Business rankings truly represents his way of working.  Mr. Vikas Oberoi, CMD, Oberoi Realty Ltd., describes his achievements and says, “The country has already gained from PM Modi’s ‘minimum government, maximum governance’ agenda. His earlier reforms like GST, RERA, insolvency code and all other similar initiatives have put the country on the growth path”. Echoing similar views, Mr. Mohit Goel, CEO, Omaxe Ltd., says, “The new government should continue investing in infrastructure, incentivize private investments in manufacturing and ease up financing. These measures will create jobs and give the necessary impetus to consumption. It should also take demand-inducing measures like fine-tuning GST norms in the real estate sector to reduce the total cost of owning a property by end users. Input costs also need a correction to develop real estate into a sustainable business.”

Here is the list of developers who shared their wishes to Narendra Modi.

Mr. Pradeep Aggarwal, Founder & Chairman – Signature Global India Pvt Ltd and Chairman – ASSOCHAM National Council on Real Estate, Housing, and Urban Development
It is good news as the step that it has taken earlier will take a better shape now. It is always good to get a government that is concerned about a sector and the people involved in it. For the first time in many years, a government has shown an inclination towards paying heed to demands of the sector. GST and RERA are the two aspects that were ignored for quite a long time and by coming out with policies for it, as far GST is concerned we feel that reduction in rates is lucrative for the buyers but Input Tax Credit should be given to developers. The government has shown that it has good intentions to fulfill the Modi Ji’s vision ‘Housing For all by 2020’ and that it is not only a slogan.

Mr. Mohit Raghav, Managing Director, MMR Group
“It was expected that Hon’ble Prime Minister will come again but, winning with such a huge margin is really remarkable in the history of Indian Democracy. The Modi Government initiated various schemes for the general masses during his first regime. And, there were various reforms and steps taken to revive the struggling real estate sector which shall start to ripe the fruits in this regime.

In addition to the previous advantages created for the end consumers of real estate sector, we also expect the government to look into the developments like Single Window Clearance for project approvals, Industry Status to the sector & GST revision with ITC benefits for the inclusive growth of the developers as well with the industry.

Mr. Amit Modi, Director, ABA Corp and President (Elect), CREDAI (Western UP)
We extend our congratulations to the newly formed government and hope this massive mandate ushers in continuing reforms in the economy, and the impetus on infrastructure and Real Estate related policies including Housing for All 2022, Industry Status to Affordable Housing, implementation of RERA, industry status for Infrastructure sector and of course the reduction of GST on housing to name a few.

Real estate is a labor and capital intensive sector that creates lakhs of economic opportunities and we look forward to contributing towards the government’s vision of providing quality housing to the citizens of the country. At the same time, we believe that a stable and strong government will be we able to deliver on long-standing demands of the industry like Industry Status for Real Estate Sector and transparent online Single Window Clearance to further contribute towards to stability and progress of the sector and the economy.

Mr. Harinder Singh Hora, MD, Reach Group
We foresee policies such as single window clearance becoming a reality soon from this government. Like many other demands, this too has been in the queue for quite some time and all the stakeholders have been waiting for it. If single window clearance comes into effect then the timely delivery will improve and it will act as one more step in regularising the real estate sector, as approvals and more so timely approvals and simultaneously development of infrastructure around projects  are an integral part of real estate development, more simplification of processes, accountability, and efficiency on timely approval from relevant Government authority is must for industry to accelerate the pace of development and bring back demand in the sector. On the retail side, FDI policy in the Retail sector will also boost demand in an organized retail development that will lead to a huge creation of Jobs and will certainly help the allied industries to flourish. Foreign investment in real estate development projects will also increase and ease out liquidity across all segments of real estate.

Due to acceleration in economic demand for commercial real estate will be very positive,  the emergence of new innovative solutions and formats such as Co-working spaces will see a rise in demand and help the growth of the industry. Overall for Reality market continuity of Existing Government brings optimism and hopes of promises being delivered to accelerate the demand and growth for the most important industry leading to positive Contributions to the Indian economy.

Mr. Ashish Bhutani, CEO, Bhutani Group
For any economy to grow there is a need for stable governance, and as the NDA is continuing its run we hope for the best.  However, in the case of the last term, the steps were taken by the government, the implementation of RERA has organized the sector to an extent and has brought back the trust of the buyer.  Also, by exempting the 4 to 12-acre land from environment clearance, it has increased the expectations that it might also work on the long pending demand of online single window clearance. By exempting smaller projects from environmental clearance, the government has taken a step ahead to understand that housing sector does not need this clearance as it hardly creates any pollution. Now, as the same government has come back to power there are chances of getting more policies that will help the real estate sector flourish.

Mr. Deepak Kapoor, Director, Gulshan Homz
Any government if continues in power then the implications on policies are positive and it is expected of them that they will carry forward the good work of the past. Numerous steps like GST, RERA, decreasing EMI burden, etc meant that the real estate sector can take a sigh of relief. It was evident in the sales figures for FY 19 that witnessed increased sales and also increased inquiries. The buyers were watching and waiting but now as the result is our the impact will be seen in the next few months only in terms of windfall in terms of sales, inquiries, and launches.

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