The Indian real estate market, like most other sectors of the economy, is hoping that a strong Government at the Centre will push through reforms, help the sector gather momentum and thereby attract investments.
There are vital regulations and initiatives related to real estate that have been gathering dust on bureaucratic tables which need to be fast-tracked and implemented, according to Anuj Puri, Chairman & Country Head, JLL India.
Though these regulations and initiatives are crucial for the real estate sector's growth, there are various complexities that must be sorted out first. One of the challenges is impartially attending to the interests of all industry stakeholders.
The other challenge is to shore up all loopholes that could remain and be exploited if not identified prior to a regulation's implementation.
Real estate bill
According to Puri, this is especially true of the pending Real Estate Regulatory Bill, which has been hotly contested at every stage.
It will require a strong and determined government to push it through. This also applies to the regulations pertaining to FDI in multi-brand retail, a subject that has drawn an incredible amount of political flak. This would have a major impact on India's attractiveness as a destination for foreign retail heavyweights.
Project approvals
Developers have been campaigning for a faster project approval process, and this is justified but by no means easy to do. While this is expected to help bring the prices down, the government must also ensure that construction quality norms are not compromised in the process.
Many overseas investment funds have so far abstained from the Indian real estate market because of the lack of regulation, political instability and bureaucratic quagmire. The new government will have the opportunity of making Indian real estate more investment-friendly and attractive, and this would go a long way in meeting its considerable capital requirements.
Investor-friendly, streamlined policies from the new government can be a game-changer for Indian real estate. The realty sector expects the new government to be less dependent on smaller coalition parties for support. The industry expects the approval and implementation of the pending Real Estate Regulatory Bill.