In the Pre Budget Memorandum, NAREDCO (National Real Estate development Council) has presented certain suggestions to the government which can prove to be very beneficial for the betterment of the Real Estate sector.
The foremost point in the Pre Budget Memorandum is that 'Industry statuses should be given to the Real estate sector or some special/Infrastructure status at par with the industry. Imparting industry status will bring about major transformation in the nature and the outlook of the real estate sector. This will be beneficial for the economy and the consumers as this will attract huge investments, big companies, shall inculcate corporate culture and industry discipline. This shall prove to be real incentive for Housing development and a major boon to realize the dream for 'Housing for All'.
Another major suggestion is the demand of housing to be treated as Infrastructure. Housing development organizations are engrossed in developing large scale projects which includes provision of water supply system, water treatment, sewerage, sanitation, solid waste treatment, laying of roads and to create recreational, educational, medical facilities as an integral part of development of satellite townships and in accordance with government's rules and regulations.
Besides the above mentioned major suggestions, there are several other suggestions made by NAREDCO in the Pre Budget memorandum which shall be very beneficial for the Real estate industry. As far as the Realtors' version is concerned, it is also in consonance with this as it truly addresses their issues. NAREDCO has welcomed the initiatives of lowering the interest rates for home loans upto 12 lacs as announced by the Prime Minister on New Year's eve. NAREDCO perceives it as a realistic measure in the direction of achieving the mission of 'Housing for All by 2022.' It shall be a relief for the masses in low and middle income groups as they would be able to afford taking home loans. NAREDCO gives the opinion that the low interest rate home loan limit of 12 lacs should not be there and it should be applicable for higher amount home loans also. The rate of interest should be lower than 7.5 percent for home loans which shall be a tremendous boost for all home buyers and the real estate sector leading to increase in employment and GDP growth by 2percent.
Inducing private sector developers, with some flexibility in planning, execution and marketing along with some incentives in taxation would be of great help in meeting the housing shortage in urban areas. NAREDCO, taking unprecedented urbanization in to consideration, feels that private sector should be roped in to meet the challenges ahead and they should be given some freedom to construct and market, under the broad policy of the Government.
Parveen Jain, NAREDCO President