It seems the Union Finance Minister Arun Jaitley has failed to address the struggling and ailing real estate sector from the standpoint of both the homebuyers as well as the developers. However, what is all the more interesting is the fact that the developers are not overtly complaining. It is only the homebuyers who are sulking while the developers are trying best to put up a brave face.
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The homebuyers’ acting as de facto consumer courts raises a fundamental question as to whether any of these buyers’ associations have any legal right to intervene suo motto and address the grievances of the buyers. The legal opinion is pretty clear on this.
A budget bonanza is a wish that businesses across the sectors dream about and real estate is no exception. Real estate, as a matter of fact, has to its claim being the key contributor of GDP and job market, besides accelerating a number of allied industries through backward and forward linkages.
A friendly budget is always on the wish list of everyone. Across the industries the stakeholders, including the consumers, have more or less the same expectations with the Finance Minister to call it a friendly budget. But in the context of the Indian real estate a friendly budget for the sector does not necessarily mean a homebuyer friendly budget.
Environmentalists have raised serious concerns over the devastating consequences of climate change. Calling it irresponsible, they question how could a parking lot service area for metro trains being allowed to destroy a critical green lung.
The report states that 10,785 acres or around 18% of lake area has been encroached in 1,547 lakes in the two districts and also names over 75 companies in a list of offenders. The report blames almost all the prominent developers in the city. This includes developers like Prestige Group, Sobha Limited, Bagmane Group, NICE (Nandi Infrastructure Corridor Enterprises Limited) and Oasis Apartments, among others.
Technology is a great enabler that is today helping to reduce the construction timelines, cost of construction & optimise land competence. Pre-cast construction methods such as Alu-form and Waffle Crete technology and new construction materials such as Autoclaved Aerated Lightweight Concrete Blocks, fly ash bricks and building blocks made of mud that has been stabilised with cement or lime are alternative technological advancements.
On the face value the developers are maintaining an optimistic outlook, but privately many of them admit that demonetization, GST and job market uncertainties have collectively spoiled the festive sentiment this time around. Add to it, the developers running short of fresh ideas in how attract today’s discerning buyers, and it seems market is destined to remain flat.
In its reply to the National Green Tribunal (NGT) in the case filed by journalist Gaurav Chaudhary & others, the Noida Authority urges the NGT to let it allow unauthorized dumping the garbage in sector 138.
The developers are by and large living in denial. The deep rooted psyche is that once the market conditions improve the buyers have no choice but to run for an asset class that is not only need-based but also a business where the demand far exceeds the supply. This medieval thought process is in fact the biggest roadblock in the way of best practices gaining ground in the Indian real estate.