The Confederation of Real Estate Developers’ Associations of India (CREDAI) is hopeful of a positive year for the India real estate industry in the New Year 2010. The market is expected to return to the 2007-08 level. Given the right opportunity and supportive policies, the real estate sector too will prove effective in driving the country’s GDP growth. Infrastructure development is an area which will play a vital role as increased connectivity in terms of roads, rail, communication, etc., will lead to development in real estate. Development of other asset classes like warehousing, logistics, tourism, hospitality, etc., will also boost real estate activity. With the government’s continued focus on infrastructure development, it seems very probable that the country’s economic revival will be driven by infrastructure growth, which in turn can accelerate real estate activities both in the residential as well as commercial segments.
The revival of the IT industry too is crucial as it impacts the development of the realty sector to a considerable extent. And for that to take place, it would be important that the US economy too gets revitalized. Hopefully, the economic revival of US will be able to help stabilize the situation as regarding the IT sector as well as Special Economic Zones (SEZs) in our country. Growth in the housing sector will also be essential in providing the much required employment boost to construction workers as a large number of them rely on construction activities. Affordable housing is an area which is set to receive a huge amount of supply in 2010 as its demand has started picking up significantly.
CREDAI has been highly active in safeguarding the interests of the sector and 2009 was one such year where despite the unpleasant effects of the global financial slowdown, CREDAI tried its best to revive the markets to the benefit of all stakeholders. The price correction measures urged to be taken by the government and thus implemented by members of CREDAI and other industry bodies were responsible to a great extent for the revival. By the end of 2009, the prices stabilised and sales improved considerably for the housing sector.
The Union Budget 2009 was one of the most crucial factors which could determine the development of the sector. CREDAI, in its recommendation to the Union Budget 2009 had expressed desire to contribute more to the national economy and sought supportive government policies for the same. But although the budget was considerate towards infrastructure, it did not make any provisions to support the much required development of the real estate sector.
CREDAI however, continued advocating the major issues which would influence the development of the sector as well as the national economy as a whole. In its pre-budget memorandum to the Govt of India, CREDAI had strongly recommended: a) Fiscal incentives for encouraging ‘Affordable Mass Housing’ in the country; b) Exemption of direct and indirect taxes to boost ‘Slum Redevelopment’ initiative; c) Increasing deduction on interest paid on Self Occupied Residential House Property; and d) Incentives to senior citizens on purchase of housing.
The vision for CREDAI presently is to provide affordable housing to the urban population and a ‘slum free India’ as expressed by the President, Pratibha Patil. The proposed model real estate regulation bill too emerged as an issue due to its clauses which might prove to be extremely detrimental for the development of the already overregulated realty sector of the country. CREDAI, while appreciating the efforts taken by the Ministry in proposing the Bill to address consumers’ concerns, expressed its concern over some clauses in the present form of the bill. Several of the acts being repeated in the states through the bill, it will present additional levels of bureaucracy to the process, posing an obstruction to speedy clearances. This in turn will cause escalation in the prices which will be transferred to the end buyer eventually. CREDAI has thus urged the government to reconsider the issues and take cohesive measures. CREDAI would be pleased to offer its assistance to the government in this regard. Source: Indianrealtynews.com
