Byline: Urvi Shrivastav
There have been several positive changes in the housing industry. India is the second-largest market opportunity for housing after China. We are at a good place given that we have the largest youngest population in the world and are at a point of inflection in terms of economic development. Several policy factors are contributing to this event.
Talking about the same, Snehdeep Aggarwal, Founder, Chairman, Bhartiya Group, tells BW Businessworld, in an event titled ‘VCWorld Convergence Global Real Estate Summit’ , “Implementation of RERA (Real Estate Regulatory Authority) has been very very successful. In my view, it is the single most positive housing development in India. In the last three years the industry is moving towards scale, and getting into the organized sector. The fact that there is a market regulator gives assurance to home buyers.” This is a positive move that will ensure timely delivery to consumers and ensures they get value for their money.
Another pivotal development is softening of mortgage rates which is also a key enabler of the housing market in India. It has extended sustainable and better quality homes at a more affordable price. “As we move towards global housing prices, we need to move towards global mortgage rates.”, adds Aggarwal. The market is exhibiting a more objective and fact-based trajectory, from speculation to a more user-friendly market. These positive changes can be attributed to proactive steps by the government. Supporting this, Aggarwal says “Central government and state government have been proactive in creating the right conditions for the promotion of the industry. Maharashtra has lowered stamp duty, Karnataka has allowed developers to buy agriculture land.” He also adds as the market moves towards self-occupier investors, developers will have to catch up which they are trying. They are realizing it is not just construction but giving a good life to a home buyer.
All these factors will create more accessibility, transparency, and will help in further expansion of the market.