ISLAMABAD: The government has established the Directorate General Immoveable Properties (DGIP) to deal with matters related to real estate and immoveable
Isn’t real estate business a real impediment to progress of India?
No. Real estate sector is not an impediment to growth of India . In fact, it is a great accelerator for the growth of economy especially for developing countries like India.
· It contributes 5% to our GDP and total returns work out in the range of 17 percent to 18 percent pa,
· It generates employment, especially for the unskilled labor of our rural population
· After agriculture, real estate sector is the second largest employment generator in India
· Its growth further increases the core industries like cement
· A better infrastructure leads to greater speed of connectivity, which in turn leads to economic growth
· It bring out the idle savings of the population forproductive investment
It has some serious issues creating a negative impression like
· Unregulated sector as there is no dedicated authority and law
· No accountability and responsibility from the builders towards investors
· There is no transparency in the process right from the point of investment in buying land to delivery of home/building to the customer
· Lengthy project approvals had opened back door consultations and corruption
· Rise of real estate mafia and tonnes of black money.
Recent initiatives from the govt to address the above issues include
· Passing of The Real Estate (Regulation and Development) Bill, 2013 to establish state level regulatory authorities called Real Estate Regulatory Authorities (RERAs).
· We are also seeing public listing of real estate companies and their boards largely comprising of independent directors. This brings in more transparency, accountability and professionalism in the way business is carried out
· 70% of the amount collected from buyers for a project must be maintained in a separate bank account and must only be used for construction of that project. The state government can alter this amount to less than 70%.
· The Bill establishes state level tribunals called Real Estate Appellate Tribunals. Decisions of RERAs can be appealed in these tribunals.
On a larger level, we hope the real estate sector evolves the way the auto sector has evolved where there is a product for everybody.
Thanks for A2A
For further reading