LUCKNOW: The only way the real estate sector will start looking up is if
old, pending projects get completed, said Parveen Jain, vice-chairman of
the National Real Estate Development Council (NAREDCO).

He added that the Real Estate (Regulation and Development) Act, 2016, Needs to be empowered further to make stronger decisions.

Speaking to TOI on the sidelines of the first RERA conclave in Lucknow, Jain said that despite RERA, people have no confidence in new projects and are investing only in ready to move into units.

The Lucknow conclave, he said, should throw up concrete results and firm commitments from the government or else it would be a waste.

NAREDCO is an apex real estate body that works under the Union ministry of housing and urban affairs.

“There are some 5-7 lakh unfinished units and it is imperative that they are delivered before the real estate sector can look up.

RERA is toothless in this matter. Among the first things, it should be empowered to do is to ensure that as a builder taking on Completion of an under-construction project, one should not be saddled with the retrospective liability of that project,” Jain said.

Pushing for completion of projects over starting new ones, Jain said that penalizing developers for delayed projects should be a secondary concern for the government.

He added that current central government schemes for the revival of the real estate sector would not achieve much because of they are narrow in their outlook.
Jain said that as per the Union finance minister Nirmala Sitharaman a fund of Rs 20,000-30,000 crore had been set up to help developers. But, he said, the money was not reaching the end-users.
“The condition for availing the fund was that projects should not come under nonperforming asset (NPA), but at present most projects fall under this category,” he said. At present, UP has unsold units worth about Rs 1, 43,000 crores, of which the UP Housing and Development Board has around 9,500 units. Despite the availability of ready to move into units, Jain said that high levels of unemployment and an uncertainty among the business class is the key reason for slowdown in the sector.
“Even now, most of those buying property are looking to invest. However, investors are generally missing from the markets. This, despite the fact, that now is the best time to invest in property due to slowdown,” Jain said.

He explained that property rates were at least 30% lesser than they were at peak time in 2012. Add to that an average of 5%
inflation each year since then, he said, and one would realize that a good deal could be had at as much as 50% lesser than its actual value.

Information Source -The Times of India

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