National Real Estate Development Council’s (NAREDCO) 13th National Convention that was held recently has concluded that the construction sector in India is likely to be the largest employer by 2022 and its size is expected to go up at about US$1 trillion by 2025 and become the third largest sector globally.
NAREDCO works under the aegis of Ministry of Housing & Urban Poverty Alleviation, in its 13th National Convention witnessed a strong participation from Senior Cabinet Ministers, leading Real Estate Developers, PE’s and International Contractors from countries such as, China, Taiwan, Malaysia and Japan. With more than 90 eminent speakers and over 700 delegates, the convention witnessed exchange of ideas and thoughts between Government, Financial Institutions, Media and the Private sector.
Among the notable speakers that made their contribution at NAREDCO’s nation wide convention comprised of Cabinet Ministers; Nitin Gadkari, Ravi Shankar Prasad, Rao Inderjit Singh, Suresh Prabhakar Prabhu, State Ministers K T Rama Rao, Captain Abhimanyu Singh, Satyendra Jain and Amitabh Kant, CEO of NITI Aayog.
It also witnessed, participation from senior bureaucrats and management of leading real estate, contractors, banking, private equity, e-commerce and media companies such as DLF, Hiranandani, Nahar Group, Jindal Realty, Tulip Infratecg, Omax, SBI, PNB, L&T, JLL, DDA, Mahindra Lifespace, HDFC Capital, Tata Housing, Brookfield, Chintels, National Housing Bank, LIC HF, Yes Bank, Altico, Ascendas Singbridge, Hines, Apollo Global Management, Bharti Realty, Leighton Group, Sumitomo Mitsui Bank, Xinjiang TBEA Real Estate Development, China Fortune Land Development, PropTiger, Magicbricks Now and NDTV & ET Now.
The real estate fraternity expressed that R&D spend needs to increase in the construction and real estate sectors significantly, so that the stuck up projects develop rapidly. During the occasion NAREDCO and KPMG jointly released a background study prepared by the latter, showcasing the Indian Economic, Urbanization and Real Estate & Construction sector trends with some key findings such as every 6th person getting urbanized globally is an Indian; its urban population is expanding by 11-12 million people annually and that the Indian economy may reach US$10 trillion by 2030.
Rajeev Talwar, Chairman, NAREDCO in his opening remarks highlighted that the real estate sector is among the important pillars of Indian economy. However, the sector is facing several headwinds restricting it to achieve its full potential. The funding in the sector needs to be enhanced and that the banking and private equity sector needs to be liberal and change its outlook towards the sector.
Parveen Jain, President, NAREDCO in his observations demanded from the policymakers that the real estate and construction sector should have sufficient finance with reduced interest rates facilities and all measures be put in place to invigorate the sector as per desired objectives.
Utkarsh Palnitkar, Partner and Head Infrastructure, Government and Healthcare, KPMG, stressed on the fact that construction sector is an important contributor of economy and a sound public-private partnership can make India the fastest growing construction market globally.
The other issues that were deliberated during the 2-day convention also included of detailing about the Real Estate Regulatory Authority about which diverse views were expressed by all stakeholders present on the occasion. It was also emphasized that real estate sector should adopt an industrial approach to achieve housing for all by 2022 and developers should re-look at design improvement and procurement environment, collaborative contracting and partnership with contractors. The top 5 suggestions generated at the convention were:
- Government must efficiently utilize the urban land and rapidly develop new serviceable land parcels in urban peripheries.
- Government should consider developing a mechanism under Real Estate Act for smooth transition of existing projects
- Capacity in urban local bodies needs to be ramped up to meet the growing real estate and construction sector needs
- Strong credit access for both developers and consumers is required to make affordable housing projects viable
- There is a need to rationalize various statutory taxes and fees to make houses affordable
Credits India Infoline