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Real estate players hail Modi govt for considering their infra status demand

Real estate players hail Modi govt for considering their infra status demand

The Narendra Modi government is planning to give infrastructure status to the real estate sector — an age-old demand of the realtors. According to the Zee Business TV exclusive report, the central government may give the infra status to the realty sector ahead of the Union Budget 2020 or maybe in the Budget 2020. The real estate sector has welcomed the government’s mood citing it would help real estate developers to counter the financial crisis, decreasing the input cost that would finally lead to a decrease in the prices of inventories at the pan India level.

Speaking on the benefit of infrastructure status for the real estate sector Dinesh Jain- MD, Exotica Housing said, “I welcome this initiative of the government. Industry status to the realty sector will be boon for the sector. Banks and financial institutions were reluctant to provide funds to real estate developers and projects in the absence of industry status. But after industry status, developers will get hassle-free loans and that too on subsidized rates like any other industries. Easy finance will save many projects from unnecessary delays due to a shortage of funds. I urge govt. to introduce a single-window system to save time in project approvals to reduce the cost of real estate projects.”

Hari Om Dixit, Director at Gayatri Group said, “Scarcity of funds is an open truth in the real estate sector. Be it small or big, lack of funds are forcing developers to default on multiple fronts; investor, home buyers, authority and creditors, since they don’t have any other option. I personally feel that refinancing to those who are still willing to deliver projects honestly will get the benefit due to industry status to real estate. They will be able to manage debts and revive construction in the stalled projects up to delivery. Joint ventures in housing projects will be more common in the sector.”

Suresh Garg- CMD, Nirala World said, “Land acquisition has become too costly and after that, a developer definitely needs a source of funding. Till date developer was either paying high interest to lending institutions or seeking a partner in a project that used to be the reason for dispute and project delay. But now onwards, large financers or investors could be part of real estate projects under defined conditions. After RERA and GST, assigning industry status to the entire real estate sector is going to push housing development at a new level. Soon real estate will be more transparent and organized like any other industry.”