There is a need for the government, private sector and small builders, to work together to come up with efficient solutions for buildings and by-laws. The target should be to build signature buildings aimed at building signature lives, said D Thara, Additional Secretary, Ministry of Housing and Urban Affairs (MoHUA).
“We all target to build signature buildings. It's time we think towards building signature lives,” she said while addressing industry stakeholders at PHDCCI’s Real Estate Summit 2023 titled ‘Policies, Funding and Investment Framework: Realising the Potential of Real Estate’ held in the capital on April 20.
She also said that Budget 2023 has increased the allocation for the Smart Cities mission and this is a great opportunity for all builders to come forward and change the way Indians live. “It is time to collaborate for planning and delivering projects which take care of the blue and green infrastructure. The bigger builders should mentor the smaller builders to reduce errors and deliver quality projects,” she said.
Kunal Kumar, Joint Secretary and Mission Director, Smart Cities Mission at MoHUA, said that over the next 35 years, ie, by the year 2047 when India completes 100 years as an independent country, “we are looking at an increase from 460 billion to 1,000 billion people in urban areas which is more than double the population.”
Comparing Germany with India, he said 40 years from now that country will have only 10 percent new buildings as per their plans, against India, which by the year 2047, will witness 70 percent new buildings, providing a great opportunity for the real estate sector.
Delhi-RERA Chairman Anand Kumar pointed out that most of the builders and property brokers are scared of Real Estate (Regulation and Development) Act, popularly known as RERA, and try to avoid complying with the provisions of this legislation.
"RERA Act is not only regulation, but it is for enhancing transparency and it is for active development of the real estate sector," Kumar said, adding that the regulators under the Act are facilitators.
He also said that there was a need to create awareness about the Act.
He said that there are several land parcels in Delhi that should be utilised for development of projects. "Unless we facilitate the development of the land we have, there will be unauthorised development," he said.
A Grant Thorton Knowledge Report was also launched at the event. Vishesh Chandiok, CEO, Grant Thornton, said at the event that the current contribution to gross domestic product (GDP) from the real estate sector is around 6 percent, and by 2030, it is expected to more than double to 13 percent.
The report said that despite the unexpected setback in 2020, the real estate sector bounced back in 2022 recording a significant growth across residential, retail and office segments and the upward trajectory is expected to continue in 2023. During 2022, the sector reported an equity investment of $7.8 billion, 60 percent of which came from foreign investors and the balance by Indian institutional investors and developers.
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