By Accommodation Times (www.accommodationtimes.com)
By Murari Chaturvedi
For domestic and foreign investors in real estate the year 2012 brings good returns. A through the super inflated property market in Mumbai is still to cool down the property markets throughout India, opens doors for investors and end users. In the past five years, first there was frenzied activity in real estate market during 2005-2007. This was followed by the recession in the property market in 2008-2009. Soon after there was gradual recovery during 2009-2011. Construction of new townships in far flung places have gained momentum. The market dynamics has offered ample opportunities for developers and investors in real estate sector in India. The rising income of the masses coupled with the increasing demand for shelter has given a steady foothold for the construction of residential premises throughout the country. The rising clout of housing finance companies has helped the residential housing construction sector. According to JLL-REIS estimates, real estate development has increased from USD 69.4 billion in 2006 to USD 160.1 billion by end of 2011. The massive development in real estate sector now needs much needed regulations. The Ministry of Housing and Urban Poverty Alleviation has woken up to this need and produced the draft of the new Real Estate (Regulation and Development) bill to addressed the malpractice in the real estate development and bring transparency in the sector, for the healthy growth of the fast developing real estate sector. The Real Estate bill is badly needed for the systematic and healthy growth of the industry. There are many issues to be addressed in the real estate development. The time frame to complete the construction of residential units in most important for which plan passing authorities as well as the willful delay by the developers are often responsible. The bill needs to look into this aspect. The undue price escalation is another important factor which affects the residence purchasers directly. The industry leaders must realize that inflated prices of residential units badly affect the end users who have booked them. The syndrome of super built up area, which is not defined and is not measurable, must be checked. For healthy growth of housing industry speculators in this field must be discouraged and kept out of this industry. Housing is the basic industry and the growing population depends on it and hence the industry leaders and the government must sit together and make it grow. Real Estate bill can do it, as it is the need of the hour.