Real estate developers must play bigger role in promoting low cost housing : Naidu

Speed Post News Network

New Delhi : The Vice President of India M Venkaiah Naidu on March 15, 2018, asked the real estate developers and builders to bring in reality in real estate sector to improve economy. He was addressing a gathering after inaugurating the two-day Confederation of Real Eastate Developers’ Association of India (CREDAI) Conclave, here. CREDAI comprises 12,000 members.

The Vice President said that housing in our country is as basic a need as food and clothing and the judiciary has broadly interpreted the right to life under Article 21 of the Constitution to include the right to shelter. He said that everyone need to adapt to the transformation that is taking place in the realty sector by combining technology, innovation and entrepreneurship. Rapid urbanization coupled with migration from rural areas has led to a massive housing shortage, Naidu added, according to a PIB release.

The Vice President said that with a view to easing the severe housing shortage, the Government has taken a number of measures to boost the affordable housing segment. He further said that challenges like lack of low cost land in urban areas and delays in clearances need to be addressed to boost affordable housing. Although the measures taken by the government have given a boost to affordable housing, there is a need for the private sector and real estate developers to play a bigger role in promoting low cost housing, he added.

The Vice President said that India should not compromise its hard-earned fiscal discipline in order to accelerate growth adding that resorting to countercyclical policies will not help spur sustained growth. He asked the real estate developers to focus on two important things for the families of the workers—health and education. These two should be given top priority and ensure that the workers and their families are not denied their basic rights in any manner, he added.

After a period of slowdown, the realty sector is showing signs of revival, which is good for the economy as construction industry and infrastructure play a vital role in propelling growth, Naidu said. The fact that real estate sector is the second largest employer after agriculture underlines the important role it plays in our economic growth.

He said various regulatory measures like implementation of RERA and GST are aimed to strengthen the real estate market by introducing transparency and creating greater confidence in the consumers. They seek to correct distortions, streamline the sector and bring in more investments. In the new ecosystem, the pioneering initiatives like 100 Smart Cities, Housing for All by 2022 and PMAY will create huge investment opportunities for new projects for private sector across the country, he added.

With a view to easing the severe housing shortage, the Government has taken measures to boost the affordable housing segment including granting infrastructure status, increasing the time limit from three to five years for completion of projects, allowing a year’s time to pay tax on notional rental income on unsold units and credit linked subsidy.