Environment clearance has been a bane for the realty industry: Ms. Manju Yagnik, Vice Chairperson, Nahar Group
There is a negative sentiment in media regarding the real estate sector post demonetization. At ground level, however, have the realty prices come down? Has Nahar group’s project taken a hit? What is going to be (demonetization’s) long term and short term impact on property segment ?
The post-demonetization effect is a temporary phase and it’s not just real estate but all sectors across categories are on a halt and in a dynamic market like India, where innovation overtakes challenges the after effects are bound to witness newer horizons. In real estate per say, where as it is the major transactions were cashless will now have a positive takeaway, the asset class will gain confidence in substantial properties and even buyers will be confident as they will see more realistic pricing across property segments.
Has demonetization affected the government’s ‘Housing for All’ project?
‘Housing for all’ is a different long term development scheme and if executed well in sync with the ongoing demonetization it would benefit the buyers and shall result in realizing the goals of ‘Housing for All 2022.
How is REITs going to affect the realty sector?
REITs will attract much needed funds into the sector. It will create a platform for small investors to invest into the real estate sector which till now was not possible. This will also give the sector an industry status and make it more organized and transparent.
Is RERA well-equipped to bring about housing reform?
The Real Estate Regulatory bill is welcomed by all; developers and home buyers alike. It is a positive initiative as it will encourage good practices employed by developers in the real estate sector. It will give a level playing field to well-known and reputed developers with good brand name and track record and help build investor and home buyer confidence. India, unlike many other countries is a domestically driven economy, where global market unrest does not have a major impact and hence the economy can withstand drastic changes.
Govt eases norms for environmental clearance to build homes, your take?
The government is assuring and initiating norms that will create long term benefits to make all process easier and affordable. Environment clearance has been a bane for the industry as the major gestation period was consumed in clearances. But now we can look forward to seeing more ease in the process as it will not only save time and money but will help in quicker delivery in project completion to home buyers.
What are your hopes for realty sector in 2017? What’s next for Nahar group?
In the year 2017, upcoming Union Budget is being anticipated as it will outline the road ahead for the economy. It will give one an idea about direct & indirect taxes, interest on home loans; which will be revised. We expect some positive news for the sector and home buyers in particular where eventually home buyers will find their dream homes that will fit their requirements and budget.
Micro cities that are mushrooming will rise in demand would be ably assisted by the planned infrastructure projects. This would further result in facilitating the building of Smart Cities. The year ahead will mark establishing of India’s aspiring developments.
It looks positive and holds a lot of hope for the realty sector. There were three good policy announcements that benefited the realty sector which include RERA, ‘Housing for All by 2022′ and Demonetization which hopefully should trigger growth, bring stability and develop it into a more organized sector in the year ahead.