Real Estate Companies must Focus on low-cost units

November 3, 2008	(Be the first to rate this story!)  Loading ...
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Despite the Indian real estate sector going through a rough patch, no government intervention is likely to come anytime soon. Urban development secretary M Ramachandran, however, said the Union government was ready to play the role of a facilitator for creating affordable housing in a public private partnership (PPP) mode. “There has been a huge shortage of housing units in the country, which can’t be addressed unless private players come forward to build low-cost units. The migrant population to cities such as Delhi and Mumbai has been increasing, and we need to swing into action now. In Mumbai, for example, 55% of the people live in slums. The Maharashtra government has taken a few steps to redevelop these slums, which is commendable,” he said.

Significantly, the Union government through Jawaharlal Nehru National Urban Renewal Mission has been instrumental in creating infrastructure in the cities which, in turn, would help the real estate sector grow, the secretary added. He said a city with better drinking water facilities, solid waste management and sound urban transport could give a major boost to the real estate sector as well. “We encouraged big cities to go for the Metro rail system and that is happening now. In addition to urban transport, we gave a major thrust to reforms under JNNURM. Maharashtra has repealed the land ceiling Act and West Bengal and Jharkhand are in the process of doing that,” he added.On setting up of a real estate regulator, Mr Ramachandran says efforts were being made to create a real estate regulator for Delhi which could be replicated in other states as well. “We have already drafted it. But it may take some time, as we will need a legislation for that,” he added.

News Published Under:   Mumbai |

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