Prime Minister Narendra Modi has aroused "great expectations" for housing sector, but they are yet to be realised and the industry continues to face a plethora of challenges, realty giant DLF's Chairman K P Singh has said.
He called for "bold decisions and upfront reformations" in urbanisation and monetary policies to realise the vision of 'Smart Cities' and 'Housing for All' announced by the new government.
In his annual message to shareholders of DLF, Singh called for a "major reorientation" in monetary policy to encourage home ownership by providing home loans at affordable rates and boost real estate sector.
The chairman of the country's largest realty firm said the economy as a whole is beginning to show distinct signs of revival propelled by the government's growth-oriented strategy.
"As far as the real estate and urban housing sector is concerned, great expectations have been aroused of a robust revival through the Prime Minister's announcement of visionary initiatives like 'Smart Cities' and 'Housing for All'.
"Unfortunately, such expectations have not yet been realised and the sector continues to face a plethora of challenges, including rising input costs, high interest rates and sluggish demand," Singh said.
He further said that there is a need to ponder about why this vital sector, which is universally acknowledged as a powerful engine of growth that contributes more than 7 per cent to the country's GDP, is not reflecting the overall uptrend being experienced by other sectors.
"The truth is that housing and real estate development is a unique industry unlike any other sector like manufacturing or services. It needs policies specifically framed to cater to its special characteristics.
Singh said a major reorientation is called for in monetary policies aimed at encouraging home ownership by providing home loans/mortgages at affordable rates.
This would not only revive demand and help achieve the target of 'Housing for All', but will also give a boost to building activity, he added.
Singh said the real estate development industry is beset by antiquated laws and a host of regulations that are a major impediment to growth.
"In order to realise the vision of 'Smart Cities and 'Housing for All', bold decisions and upfront reformations are needed in our urbanisation policy, monetary policy in the form of low costs finance for home buyers, availability of mortgage/reverse mortgage market and above all in the regulatory framework for real estate sector," he said.
Singh emphasised on the need to create an environment where people are encouraged to own a house at the beginning of their career, but not at the retirement age.
