Secretary, Ministry of Housing and Urban Affairs, (MoHUA), Durga Shankar Mishra has said that the real estate sector was one of the most important sectors of the economy and the government is keen on infrastructure investment as it helps in the revival of the economy.
Addressing a special session at the industry chamber, Federation of Indian Chambers of Commerce and Industry (FICCI)’s 14th Annual FICCI Real Estate Summit on Thursday, Mishra, said, “The focus and reforms in real estate sector in past six years has been unparalleled; be it about ease of doing business or the Real Estate (Regulation and Development) Act, (RERA).”
He also highlighted that the real estate sector would have a crucial role to play in the revival of the economy post the pandemic, be it in terms of employment generation, contribution to the GDP or the direct multi-sectoral link.
Mishra further said that the government’s focus should be on kickstarting and creating demand in the housing sector.
“We should find innovative solutions considering the altering demands in the real estate sector,” he said.
Mishra also elaborated on the new technologies that had been inducted.
“For the first time, with the global housing technology challenge, 54 types of new technologies were introduced into the sector. Today, in more than half of the cities across India, there is an IT-based solution for construction permits. Also, we have made a new curriculum to make people technology sensitive,” he added.
The nationwide lockdown resulting from the COVID-19 pandemic witnessed large reverse migration of temporary workers from the country’s big cities back to their towns and villages. Consequently, the Central Government had introduced the concept of the affordable rental housing complex (ARHC) for the first time.
“FICCI will have to play an important role in affordable rental housing complex planning, especially social rental housing,” Mishra further said.
Raj Menda, Joint Chair, FICCI Real Estate Committee and Corporate Chairman, RMZ Corp, said, “As the economy moves towards normalcy, sentiments of the real estate sector should also improve. Although, stakeholders’ sentiment towards the future has shown improvement as compared to the previous quarter.”
Menda also urged the government for its support in allowing GST to be set off from the rents.
Irfan Razack, Co-Chair, FICCI Real Estate Committee and CMD, Prestige Group said, “There is a huge demand for a range of housing; unfortunately, housing is taxed almost three times.”
He also added that the government’s focus should be on kickstarting and creating demand in the housing sector.
Two reports, FICCI-CBRE Report Post-COVID-19: The Future of Office and Industrial and Logistics Real Estate in India and FICCI-Colliers Report Future India: Captivating Strategic and Private Equity Investments, were also released during the summit.