MUMBAI: Concerned over the rising land cost, realty experts believe that growth in infrastructure development will result in bringing the prices down. “Infrastructure plays a key role in real estate development. Land prices will come down if infrastructure is in properly developed. Ahmedabad, Hyderabad are two good examples where property prices have remained stable due to infrastructure support,” Jones Lang LaSalle India Chairman and Country Head Anuj Puri said at an event here.
Realty body Naredco, along with APREA, has organised a two-day Real Estate and Infrastructure Investors’ Summit 2016. “Opening up of land for development helps in making a city vibrant. The solution to create affordable housing would be to open more land and improve infrastructure,” he said. Puri also said that real estate is in an evolution phase and even foreign markets like US and Germany have gone through this cycle.
“The retail real estate is doing well due to good quality projects and is presently in a consolidation mode,” he added. Mumbai Port Trust (MbPT) Managing Director Sanjay Bhatia listed a number of initiatives taken by the authority including creating iconic infrastructure projects such as entertainment hubs and all weather marina project at Princess Dock.
“MbPT will soon free 150 hectares from its land parcel for various infrastructure projects. We have planned an entertainment hub at Victoria and Princess Docks, while Marine Drive is all set to get a facelift with two jetties at Chowpatty and the NCPA end,” he said. In another project, the world’s highest ropeway is being planned from Sewri to Elephanta over the proposed Mumbai Trans Harbour Link, he said adding Mumbai will also become the gateway for international cruise ships.
Oberoi Realty Chairman and Managing Director Vikas Oberoi said, “it is intriguing to see that when a project is launched and construction just begins it is considered inventory. This is misleading. It creates negative sentiments and sends out wrong signals to the market.” While raising funds through banks continues to be a challenge for developers, Dena Bank Chairman and Managing Director Ashwani Kumar said for banks debt raised by realty players becoming NPAs is not an issue today as they (banks) are doing due diligence and financing projects of only good developers.
Talking about REITs and InvITs, BSE Managing Director and CEO Ashish Kumar Chauhan said, “real estate has been an enigma and not standardised. REITs and InvITs are important for us and when it is traded on the exchange it will make investors more comfortable.” Explaining the importance of the Real Estate Regulatory Authority (RERA), Piramal Fund Management Managing Director Khushru Jijina said, “REITs is a game changer for the industry. RERA is accelerating the process of natural death of bad developers and will eventually bring consolidation into the market, which is good for the long term.”
Maharashtra’s housing department Principal Secretary Shreekant Singh said RERA will provide transparency to all stakeholders. “RERA is not one sided, but the Act has taken care of the interest of both the consumers and developers. Real estate has the largest share in the GDP. We assure that RERA will cover concerns and issues of all stakeholders leading to transparency in realty,” he added.
Credits ET Realty