Wednesday, September 15, 2010

Omaxe's Outlook for Industry + Regulator

Omaxe Ltd CEO, Rohtas Goel has the following views for the Industry and the Real Estate Regulator.

Indian Real Estate is still in the initial stage of business cycle. There is still gap of more than 25 million dwelling units and 90% of demand falls in affordable housing category. It is going to be a long-term game and this business shall be perceived as any other manufacturing business where the play will be more of volume than value. There are still lots of unorganized player in the market which give immense scope for branded players like us to explore new territories.

real Estate Regulator in India - The Draft Bill on Model Real Estate Act, which is a need of the hour, is meant to promote planned and healthy real estate development with a view to protection of consumer interest on one hand and to facilitate smooth and speedy construction on the other. Moreover, one of the prime objectives of the bill is to remove malpractices and fly-by-night developers. The initiative taken by the ministry is commendable and seems to be a step in the right direction. However, there are certain provisions proposed which may defeat the very purpose for which the act has been proposed. According to planning commission survey, there’s a shortage of approx. 24.7 mn housing in India and if the draft bill is introduced in its present form then it would hamper rather promoting India’s real estate development.

Besides, the developers that are working to meet the acute shortage of dwelling units, which is in country’s interest, will be refrained from working at the desired pace. The proposed act in its present form will add costs and delays to the lifecycle of the project. In our opinion simplifying the approval procedures, facilitation, regulation, control and growth of real estate development and safeguarding interest of all stake holders should be its objectives.

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