India's Vote for Growth

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Billions of Indians have given their verdict and the results are finally out. The real estate sector in Modi’s first tenure no doubt got the maximum policy-related attention from the government. Historically, no other government has done as much for the real estate sector. With Modi 2.0 becoming a reality, we take a look at the real estate’s stakeholder’s sentiments. Niranjan Hiranandani, National President, NAREDCO, “Our hearty congratulations to the new government Modi 2.0 and we look forward to the continuity of the progressive policies that were initiated in the past five years. We believe the new government works further for the structural reforms and steps that will boost real estate business and strengthen consumer sentiment towards Indian real estate. Furthermore, under the decisive leadership of the Hon’ble prime minister, the nation will be able to continue as the world’s fastest growing economy.” Ashok Mohanani, Chairman, Ekta World and Vice-President, NAREDCO Maharashtra, “The win of BJP is a reflection of India wanting sustenance, accountability and growth. Given the massive development that the country witnessed in the last five years, global positioning and international presence; we were always a name to reckon with. This win reinforces the belief that India is on the Global map and citizens of India want this transformation. We are therefore happy with this decision and are positive about further growth in the real estate industry.” Sanjay Dutt, MD & CEO, Tata Realty & Infrastructure Limited and Tata Housing Development Company,“The election results is good news for the real estate sector. We witnessed significant movement in the infrastructure and real estate sector along with the rise in GDP that resulted in job opportunities and confidence in the real estate sector. With the stability in the Government, we expect investments to increase and Private Equity will play a larger role.” Vikas Oberoi, CMD, Oberoi Realty Ltd., “It is a big win for democracy, and I am extremely glad that PM Modi who showed grit and determination in bringing about ground-breaking reforms and policy changes in every sphere, is back at the helm. The country has already gained from PM Modi’s ‘minimum government, maximum governance’ agenda. His earlier reforms like GST, RERA, insolvency code and all other similar initiatives have put the country on the growth path.With such an emphatic mandate, I believe that PM Modi and his team will go all out to build a stronger nation. Given the political stability and the fact that India is a growing market there will be no dearth of private investment for India Inc. from across the world. I wish him all the best in continuing to build the India of our dreams." "The current contribution to the GDP by the real estate industry is almost 13%. This industry in India is projected to grow from USD 130 billion in 2017 to USD 230 billion by 2030. The biggest initiative taken by the Modi government in the previous term was to establish RERA, which protects both consumers and developers alike. The initial challenges faced by the real estate industry will soon transform into the opportunities envisaged through the continuation and implementation of growth-friendly policies. Through the focus on affordable housing, allowance of real estate investments (REITS) by the government and various tax sops, the industry has the capacity to become a stable and sustainable investment model once again." opines Mona Jalota, Founder, Krypton Global Investments. Rohit Kapoor, CEO, New Real Estate Business, OYO Hotels and Homes, “This overwhelming mandate is an endorsement of the pro-reform policies implemented so far. This is especially true for the real estate sector, which is labor and capital intensive and creates lakhs of economic opportunities. We look forward to contributing towards the new govt’s vision of providing quality housing. With the increased participation of the youth and especially women in the electoral process, the opportunity to also address the aspirations of the ‘co-living and co-working generation’ is immense.” Also read http://realtyplusmag.com/real-estate-sector-expects-government-push/ Manju Yagnik, Vice Chairperson Nahar Group & Vice President NAREDCO (Maharashtra),“With the Government’s second tenure we urge them to cut down on the home loan rates for the homebuyers as this can help in achieving ‘Housing for all’ by 2022 and provide major monetary relief to the potential homebuyers. To make processes smooth and ensure complete transparency, we are also looking forward to the digitization of the approval processes and furthermore single window clearance to avoid delays and quicken the overall process”. “On the back of the exit polls, it was fairly evident that once again we would have a Modi led government re-establish power at the centre. This spells confidence for macro-economic activity picking up pace again, along with the outlook for realty businesses to improve in the mid to long run. The election results will also have a more immediate and direct bearing on consumer and investor sentiment. Having a stable government at the helm bodes well, especially in the current scenario, where the realty sector is reeling under the pressures of a liquidity crisis. I firmly believe that the Modi government in its second term will lay greater emphasis on enforcement and implementation of the reform and regulatory mechanisms it set in motion in 2016. It is also heartening to know, that despite the hardships the sector has faced the reform agenda is equally endorsed by all stakeholders. Having said this, we do need to work towards streamlining our approval mechanisms and moving to a single window clearance system, while at the same time also considering establishing a Construction Regulatory Authority (CRA) to create a fair and level playing field for construction activity to flourish. We also need to ensure that different regulatory mechanisms talk back to each other in order to aide cash flows in the sector. This can be facilitated, bearing in mind the Digital India mandate, by technology and other platforms that are available.” added Nimish Gupta FRICS – MD, South Asia - RICS Aashish Agarwal, Senior Director, Valuation & Advisory, Colliers International India,“The NDA Government’s return to power with a decisive mandate will reassure global and domestic investors of stability, certainty and continued focus on growth. The real estate sector has high expectations from the new Government to improve liquidity, balance fiscal discipline with the stimulus, expedite resolution of stressed projects and streamline implementation of RERA”. Nabil Patel, Director - Sales, Marketing and Business Development, DB Realty, "The real estate industry has phenomenal expectations from the BJP led NDA government. A strong government, Modi 2.0, having an overwhelming majority in the center, will provide a remarkable sense of positivism in the market. In terms of streamlining RERA, resolution on stressed projects as well as aiming to boost housing to fulfill the ambition of 'Housing for All', we are expecting to see the real estate industry pick up the pace. All the efforts taken in the last five years will finally sail through in the coming future. We also expect the government to take steps towards expediting the environment clearances for new projects along with solving the issue of the liquidity crisis that our sector is currently facing." As five years are too short a time to undo decades of work, the industry stakeholders have given this government the benefit of doubt and good wishes for a successful fulfilling tenure. It is an unenviable task ahead of the Modi government and all one can do is wait and watch to see whether the government can take up the task of unfettering the real estate industry from the chains that currently bind it.