The blueprint for Modi’s agenda- ‘’Acche Din aane wale hain’’
BJP ’s election manifesto was filled with promises for the real estate sector, infra projects and industrialisation. Due to the economic slowdown, the demand in the real estate segment had reduced and the new infra projects were not getting approvals from the former government. The unstable economy had resulted in a turmoil in the market and the buyers were hesitant to invest. Top notch developers were finding it difficult to find investors and lenders and there were very few effective policies to safeguard the real estate sector. In the next 12 to 18 months, there lays a huge challenge in front of the Modi Govt. to chart out the changes at the macroeconomic policy level and at the consumer level in helping to increase their buying power. 95 % of the economically weaker section of the urban population is homeless, and there is a huge shortage of 18.78 million units.
Jones Lang LaSalle (JLL India) is a global real estate services firm and its Chairman & Country Head, Anuj Puri stated that even though he Indian government has always kept low-cost housing in the focus, the private real estate sector never focussed on it as the margins were low. Equity participation by Private Equity Funds (PE funds) has been very less as in a high inflationary economy like in India; the profitability was very low in the budget housing space. The developers and the PE investors will be interested in such projects if there is a quick turn-around time and the bureaucratic red tapes are eliminated by quicker land acquisitions and faster approvals.
Source- The Tribune
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