Would the Modi government be able to bootstrap the realty sector?

by Tgs Layouts Real Estate

A lot of speculations were made prior to the BJP forming a government at the centre. The expectations were sky high since the previous two governments of UPA – I and UPA – II got the economy into rags. The country wanted a change and it’s reflected in the BJP led NDA getting highest majority in decades so as to single-handedly form the government. Among these, the real estate sector was one that was looking expectantly at the centre, for a strong hand to come to its rescue. It’s not like the property market was in such a bad shape, but it certainly was and is going through a period of lull.

There are various factors related to the slow growth of construction business like, too much government approvals and too much of paper work, that ultimately delays the construction process and delivery to the buyers. For any home buyer, it’s his or her biggest purchase of their lifetime. Factors like delayed projects and other such bottlenecks directly affect the buyers’ confidence. The government‘s plans are to minimize these traditional formalities so that projects don’t get delayed, for the home buyer is the person who actually bears the blow in the end.

A lot was said about the plans made for making India a super power in the coming years and none of the plans were seen to take shape in realty. The plans were all well strategized. But on the ground, after a year of the Modi government assuming office, nothing much has changed from the point of view of the realty sector. What home buyers needed the most was an assurance that their interests will be well looked after.

The BJP government’s election manifesto said it would see to it that every individual had their own home by 2022. There came a ray of hope for the real estate industry last year, but nothing much seems to be happening. Not that it’s entirely government’s fault since it is honestly focused on the Land Acquisition Bill, which is stuck in the Rajya Sabha where the government is short of adequate majority required to pass it on to make it a law. The Congress Vice President Rahul Gandhi is fighting tooth and nail to stop it and UPA happens to hold 70 seats in the Rajya Sabha whereas BJP led NDA has 63.

The other initiatives the government is attempting to push in order to speed up real estate growth are Real Estate Regulation Bill, Smart cities initiative, Industrial Corridors, etc. The people would definitely want something tangible on the ground to believe on its election promises although being aware of the factors holding the government back. This is what the opposition is apparently leveraging on to abrase the popularity of the Modi government.

The Make in India campaign struck the right chord and the world is looking at India as a manufacturing hub. The plan of 100 Smart Cities look like a fairy dream which if initiated would prove as a boon to the real estate business. But there is no clear idea of what would go into making a smart city, who will be responsible for its development and what are the specific game plans. The government is unable to get the Land Acquisition Bill even cleared. What will happen when Smart City development plans take shape? Modi has sought for Singapore’s help in the housing sector for low-cost and affordable housing in India, but there’s a long way to go before anyone can do anything about it. The opposition must work on what is actually better for India and not their negative marketing politics.

A plenty of questions arise when we look at the hurdles the government is facing at getting headway with their proposed ideas within the first year itself. It’s not that the government is at fault, but the way the opposition is playing its cards, it gets very unclear on how will the promises made will ever become a realty. How is the Modi government going to help the Real Estate Industry makeover its image of delayed project which is going on for decades?