Indian real estate awaits a proactive governmentDevelopers have been campaigning for a faster project approval process, and this is justified but by no means easy to do. Again, the government faces the challenge of ensuring that any fast-tracked approval process does not result in misuse and exploitation. While faster approvals would boost the supply pipeline and help bring prices down, the government must also ensure that construction quality norms are not compromised in the process. Also, faster approvals could result in the provision of support infrastructure falling several more laps behind while newer precincts are being developed.
That said, swifter and more determined decision-making than what we have seen so far is definitely of the essence. 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.
Expectations:
· The industry expects the new ruling government to be less dependent on smaller coalition parties for support
· A clear electoral mandate will help real estate investors to obtain clarity on future policies, which is critical while making future business plans
· The industry expects REITs to become operational in India so as to increase liquidity
· The industry expects the approval and implementation of the pending Real Estate Regulatory Bill
Anuj Puri is the Chairman & Country Head of JLL India
