Mumbai Ka Manifesto: Developers seek cheap credit, more land & better sentiment

The real estate industry for a very long time has been facing a slack period thanks to a slowdown that existed for years altogether. However, with elections close by, the industry is expecting that their voices will be heard and solutions for their issues will be discussed. They have a lot of hope and have some pertinent points to be put in the manifesto.

Developers across Mumbai Metropolitan Region hope for good sales and are of the opinion the government can help them with their policies to reinvigorate homebuying. Rajan Bandelkar, President of Naredco Maharashtra, said, "The biggest catalyst for the real estate industry is sales. We suggest that the government enable customer-oriented benefits which will help boost sales, leading to a cash inflow into the sector that is badly grappling with liquidity."

The biggest problem that developers face now is that of availability of land and expect the government to free up some land parcels. Ashok Mohanani, Vice President of Naredco Maharashtra, said, "Real estate sector significantly contributes to India's GDP and is poised to contribute 13% by 2025. Despite the recent credit crunch the sector has faced, analysts continue to be bullish about the sector. While there is a good demand for housing and commercial projects in the country, the non-availability of land within city limits along with rising land and construction cost is leading to an increase in the overall cost of the projects."

Developers are also pitching for cheaper credit for them and homebuyers. Arvind Goel, a prominent developer from Navi Mumbai, says, "The biggest problem is sentiments aren't in favour. There should be an effort to bring feel-good sentiments in the economy." Goel further added, "Housing finance interest rate should come down to 6-7% gradually. This will benefit homebuyers. Finances to a developer at present are given at 13-14%, it should be brought down even if it is for time being."

The other thing that developers want the government to do is to make conditions so conducive that unsold inventory gets sold. Developers says, for this, the homebuyers should feel confident that the economy will go up which means there will be appreciation in prices and only then they will buy homes.

Bandelkar further added, "The industry strongly hopes that the government gives a reconsideration to subvention schemes in the best interest of consumers as the first-time homebuyer cannot be burdened under rent and EMI at the same time."

Reach out to us with your suggestions at 
manifesto@dnaindia.net