INRnews - Indian Real Estate News

Mr. Poddar made these comments at the FICCI - International Real Estate Summit 2006. He also added, “Of course this sector will be among the largest employer and will help in achieving all inclusive growth that the country needs so badly. This is one sector which will assist the Government in fulfilling its obligations under the employment guarantee schemes.”
 
Strong growth in the services and manufacturing sectors has helped in urbanization and created a burgeoning middle class with higher purchasing power and change in spending habits according to the FICCI President. This has contributed to a huge growth in demand for all segments of the real estate market.

Touching upon some of the real challenges that needs to be addressed urgently, the FICCI President highlighted the complicated nature of the Urban Land Ceiling Act which needs to be repealed by few more states; the cumbersome land transactions and the lengthy and arduous procedure to procure land for real estate projects; absence of well developed land markets, unclear land titles and high cost of land which make cost of most projects uncompetitive. He strongly urged for rapid reforms in these areas which should benchmark global best practices. Lamenting lengthy processes in getting clearances and approvals for housing and real estate projects, Mr. Poddar urged all State Governments to adopt e-governance, for, lack of information is one of the major reasons for low transparency in Indian real estate markets. Furthermore, he urged the Government to look at possibilities of reducing stamp duty rates and making it uniform.