‘RERA Has Brought In Significant Transparency, Accountability’
Can you share success stories of affordable housing projects that have helped in improving access to housing for lower-income communities?
Certainly, there have been several successful affordable housing projects that have significantly improved access to housing for lower-income communities. Launched in 2015, the Pradhan Mantri Awas Yojana (PMAY) is a government initiative aimed at providing affordable housing to all eligible beneficiaries. The Mahila Awas Yojana in Rajasthan specifically targets women from economically weaker sections and provides them with financial assistance to build or renovate their homes. The Sardar Patel Awas Yojana in Gujarat focuses on providing affordable housing to the urban poor. It offers subsidies and financial assistance to beneficiaries, enabling them to own a house with improved amenities and basic infrastructure. The project has been successful in promoting homeownership among low-income families. Now the latest talk of the town is the Dharavi Redevelopment Project, Mumbai, which aims to transform the area into a well-planned urban space with improved infrastructure and housing.
What steps has the government taken to streamline regulatory processes and create a more investor-friendly environment in the real estate sector?
RERA is a landmark legislation that has brought significant transparency and accountability to the real estate sector. This has instilled confidence among buyers and investors, leading to increased transparency and a safer investment environment. Many states in India have introduced single-window clearance mechanisms for real estate projects. The government has embraced digital platforms for various approvals and permissions. This reduces the need for physical visits and expedites the clearance process. Initiatives like the ‘e-biz’ platform offer online services for obtaining clearances and permits. The implementation of GST has replaced multiple taxes with a single, unified tax structure.
What are the tax incentives and benefits available for real estate developers and investors, and how are these encouraging investment in the sector?
The government offers various tax incentives to developers and investors engaged in affordable housing projects. These include a deduction under Section 80-IBA of the Income Tax Act, which allows developers to claim a tax deduction on profits from affordable housing projects. Additionally, the interest subsidy provided to homebuyers under schemes like the PMAY can stimulate demand for affordable housing projects. Then, REITs (Real Estate Investment Trusts) enjoy certain tax benefits, such as exemption from capital gains tax on the transfer of assets to the REIT and dividend distribution tax at the SPV (special purpose vehicle) level. These benefits make REITs an attractive investment option for investors seeking exposure to the real estate sector without directly owning properties. Homebuyers can avail tax deductions on the interest paid on home loans under Section 24(b) of the Income Tax Act; this incentivises property purchases and boosts the demand for real estate.
How is the private and the public sector collaborating with each other to address the infrastructural needs of the real estate industry and support its growth?
Collaborative partnerships have emerged as a driving force behind the transformation of urban landscapes. Public-private partnerships (PPPs) bring together the strengths of both sectors, leveraging public resources and regulatory frameworks with private capital and efficiency. These partnerships enable the creation of state-of-the-art infrastructure, spanning transportation networks, utility services, and social amenities, that lays the groundwork for thriving communities. However, successful collaboration hinges on open communication, shared goals, and a commitment to the greater good. By aligning objectives, pooling resources and harnessing each sector's unique strengths the private and public sectors can jointly construct the foundations for resilient, prosperous cities that cater to the needs of both present and future generations.
What is the real estate sector doing on the ground to promote sustainable development and environmentally-friendly practices?
Central to this shift is the proliferation of green building certification systems, exemplified by LEED and IGBC ratings. Energy efficiency has emerged as a focal point, with real estate projects integrating solar panels, LED lighting and efficient HVAC systems. Beyond curbing carbon emissions, these innovations yield economic benefits by reducing operational costs for both developers and occupants. Waste management practices have been revamped, interweaving waste reduction and proper disposal into construction and property management protocols. The issue of water scarcity, particularly prevalent across India, has driven the integration of rainwater harvesting systems within buildings. Developers have taken to crafting low-impact landscapes populated by native and drought-resistant flora, not only for aesthetic purposes but also to enhance air quality and temperature regulation.
How is skilling in the real estate sector empowering the industry for growth?
The National Real Estate Development Council (NAREDCO) has emerged as a pivotal player in shaping the skill ecosystem of the Indian real estate sector. NAREDCO has been at the forefront of advocating skill development and training initiatives that bridge the gap between industry demands and workforce capabilities. By collaborating with training institutions, universities, and vocational programmes, NAREDCO facilitates the design and implementation of curriculum that aligns with the industry's current and future needs.
