Nambiar Builders
The real estate sector in India is among the most vibrant ones in the world. India has moved from being a country with four metros to seven and numerous mini-metros. Though a large populace still lives in the hinterlands, more and more people are moving towards mini metros and metros in search of better opportunities and a lifestyle. This has generated the need for a sustainable infrastructure to house these people and make their lives livable.
It would be interesting to note that around 10 million people move to cities annually! This means that there is a dire need for our cities to become self sufficient with housing, efficient local transportation, high hygiene standards and lower pollution levels.
The shortfall in housing units is pegged at around 18.8 million, which means that there is an urgent need to create more and more units to provide people with one of their most basic needs – a home. This will entail infusion of large funds into the sector. According to a report, the sector is poised for phenomenal growth by 2025 and is estimated to become a USD 676 Billion market.
While the sector provides the much needed infrastructure, it has its own set of issues. Limited or no access to funds, cumbersome regulatory processes, compliance etc have been dogging the sector and affecting it adversely. Add to that, every state has its own rules when it comes to this high revenue generating sector.
Having said that, let me make a point about what can be done to revive this ailing sector which holds promise. The recent announcement made by our Prime Minister Narendra Modi about clearing the way for Foreign Direct Investment (FDI) to come into the sector comes in as a definitive solution which will have a long term impact on the growth of the sector.
Let us understand that if this statement from the prime minister gains ground, how it would impact the sector. Firstly the cash-starved sector needs a fresh impetus in housing. The old adage about Roti, Kapda aur Makaan can be fulfilled to a large extent if housing is accorded top priority in India when it comes to bringing in FDI.
Today, the real estate sector, is facing hard times managing their cash flows. With banks becoming tighter on lending, the timelines of deliveries have taken a hit. It is not the case that the government wants to degrade the sector but it has its own agenda in creating a level playing field across priority and non priority sectors which can result in an inclusive growth for all.
This FDI proposition is not just about bringing in the dollars and helping the sector revive. Apart from money, the larger focus would be a holistic one wherein we bring here global expertise and upgrade in operational strengths. India lacks on the technical and financial strengths which calls for a global support system which can sensitize those on ground. Be it architects, contractors, material suppliers and most vital being the project management diaspora.
These important elements of the sector need all-round improvement. With the demand for housing growing, it has become necessary to imbibe global skills and become competitive, process and result driven. All this would encompass what is casually spoken as FDI means only the dollars.
Now this can be called good news. If the sector gets the required money, gets an upgrade for its standards and becomes more transparent, growth is just round the corner. It needs to be understood that one can be healthy if each and every part of his body is in good working condition. Similar is the case with the sector. All the departments need to be rejuvenated and this can be done only when we have a foreign direct investment of money and a direct investment of global standards and practices.
Housing, per se, has not seen much traction when it comes to bringing in FDI except for a few investments which came in to builders who already had a foreign partner in place to address the expandable market the builders would get.
With more and more builders adopting the joint venture development route with foreign players, there is a new market which is opening up. Traditional builders who are large in size and have huge land banks stand to benefit the most from FDI.
This sums up a synopsis of what we at Nambiar Builders feel about a regulator-driven move to bring in FDI. We feel this must gain momentum in the larger interest of the real estate sector which addresses the survival of over 300 allied sectors especially the manufacturing and service sectors.
Rising disposable incomes and an undying quest to indulge and get the best from life, more and more people are going for luxury homes in India. It is interesting to note that the luxury housing segment is the fastest growing one. The top 7 cities in the country are spearheading this new phenomenon backed by a strong community of NRIs buying luxury homes. With such a positive sentiment among the buyer community today, FDI will only add to the flavor.
Anda sedang membaca artikel tentang
FDI in Real Estate- It`s not just about the money!
Dengan url
http://untukkesehatanda.blogspot.com/2014/12/fdi-in-real-estate-its-not-just-about.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
FDI in Real Estate- It`s not just about the money!
namun jangan lupa untuk meletakkan link
FDI in Real Estate- It`s not just about the money!
sebagai sumbernya
0 komentar:
Posting Komentar