CREDAI CONCLAVE - `Real estate sector is raring to forge ahead'
Developers from all over the country are rearing to adopt various meas ures introduced by the government to usher in a transparent and regulated regime in the sector.
At a time when the Real Estate (Regulation and Development) Act, 2016, and the GST are in their final stage of implementation, the Confederation of Real Estate Developers' Associations of India (Credai), in its two-day annual conclave, expressed its full belief that these changes would benefit the real estate sector.
The two days conclave was inaugurated by M Venkaiah Naidu, Union minister of Urban Development, Housing & Urban Poverty Alleviation, in the presence of Sadhguru Jaggi Vasudev, and was attended by Rajiv Pratap Rudy, MoS for Skill Development and Entrepreneurship (independent charge), Credai members, real estate experts, alongside leaders of premier banks and financial institutions.
Members of Credai discussed the issues that would emerge in the light of new policy frameworks. They expressed their full commitment in adopting the new frame works, which they believe will increase consumer trust and lead to a better business environment.
This fraternity of developers is happy with the new proposed regimes provided the government gives them their due in the form of fast approvals for projects and cheap bank finance and develops quality physical and social infrastructure before handing them over land for construction of projects. They also explored ideas and means to raise cheap funds through bond issues for affordable projects.
In order to conform to the provisions of the forthcoming Real Estate Regulatory Authority (RERA), Credai signed an agreement with CoreLogic, a leading provider of consumer, financial and property information, for software that would make online compliance of RERA easier.
GST and digitization of payments pose strategic and operational challenges to the sector. Developers discussed the issues at the conclave and wanted that the Centre should come out with clear policies, so that the implementation of GST would not increase the burden of taxes on developers. Speaking at inauguration of the Conclave, Irfan Razack, chairman of CredaiNational, said: “The real estate sector has evolved to a great extent in the last five years. Credai has been at the heart of this change, as we promoted greater professionalism, skilling, transparency, and customer-centricity. Our achievements include bringing close to 11,500 members across 168 cities under one organization, bound by a strict code of conduct and with all the members doing their best to promote social welfare projects in the areas of skill development, health, hygiene, literacy, and technical education.“
Getamber Anand, president of CredaiNational, spoke about Credai's role in nation building: “Never before has the government recognized the value of the real estate sector to the economy. Over 20 crore people are dependent on this sector for livelihood. Real estate contributes 6% to India's GDP and sources extensively from 10,000 factories, fuelling India's manufacturing sector.“
Anand also thanked the Centre for addressing housing shortage by aggressively promoting housing by giving infrastructure status to affordable housing, IT exemption, and subsidies. “Credai will be formally compliant with RERA and work to make the law a success,“ Anand asserted.
Naidu delivered the keynote address. He said the sector is “raring to go ahead“. Regulations like RERA and GST, Naidu said, would create an ecosystem to put aside legacy issues and bring in a culture of character, credibility, confidence, and cash.
Jaxay Shah, president elect of Credai, National, said on the occasion: “This has been a watershed Budget for the real estate industry. We are happy the Centre has addressed long-standing demands that will take care of issues relating to access to institutional funding, high taxation and clearing operational hurdles.“
In picture, left to right: Sadhguru Jaggi Vasudev, Getamber Anand, M Venkaiah Naidu, Jaxay Shah (extreme right) The industry's concern of faster approvals is also being addressed by the government with a concrete result visible soon, Naidu asserted.
A report, jointly released by Credai and real estate analytics firm, CBRE, noted: “Consumption and sales across sectors that had seen a relative dip in the immediate months post-demonetization are already picking up at an expected pace, mainly due to the smooth re-monetization process adopted by the government.“
Highlights of the conclave included a motivational address by spiritual thinker Shri Sadhguru, who was himself a developer before the spiritual turn in his life. Credai also announced the setting up of a digital RERA Compliance Management System (RCMS).