The real estate sector can donate significantly to the economy only if certain structural & fundamental reforms are implemented, added by Anita Arjundas, MD and CEO, Mahindra Life space developers ltd (@Life_space) who is also the arm of Mahindra Group. While some of the reforms fails under the concern of the state government, but the uniform of template & policy guideline from the centre with some motivation for reform implementation can actually go a long way in the sector, added by her, and she is also the Chairperson of the FICCI Real Estate Committee.
Regulatory modification
There is a need to trim down the approval cycles by just bringing easy and trouble-free clearance mechanism for all the projects. Besides this, the delay in the approvals, acts as a massive obstacle to the growth of this sector and even add to the cost of the development. The real estate regulator is welcome, but this required a transparency and responsibilities from the authentic government agencies.
Fiscal modification
Manufacturing as a key of center of attention are for job creation, whereas, government need to perk up the development of SEZs to impel exports from India. Now the new government must take a move to cut down the cost of home ownership by downsizing the multiple taxes impose on real estate in the country. Currently, we have a situation where the same transaction is treated as an stable property, a manufactures product and a service cause to add to the cost that are eventually bear by the customers.
Financial restructuring
Cost effective access to capital, timely and capital intensive is a essential concern area. No doubt, some work has already happened here and taking this ahead the implementation of REITs(Real Estate investment Trust) permitting infrastructure status to the industry to recover access to cost of finance can aid the industry perfectly.
Land modification
Give a face-lift to the land acquisition process to stress greater responsibility and delivery on timelines while ensuring that return is fair and unbiased.
While the planned urbanization is urgent and required the land acquisition act to be re-visited given that it presently does not support timely urban and industrial development.
Labour pool
Invest in skill development initiatives at the workmen level and also in specialist area such as urban planning. Furthermore, The National Skill Development has categorized many sector of concern to enable skill creation and employment. Construction is one of the large-scale programmes to support training in this area will aid in creating a vigorous ecosystem and better skill levels. Lastly, all these measures help in creating a sustainable ecosystem for quicker infrastructure creation and expansion of the sector, says Anita Arjundas.
