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HOUSING

Real estate prices may continue to fall FDI should focus on af-

Real Estate has always been the most sought-after asset class. With a good fordable housing, digital
reason and considering the kind of returns it has delivered in the past. Even
India: Keki Mistry
after the financial crisis of 2008, some real estate mar-
kets saw unprecedented growth. Global Private Equity giants, leading
real estate develop-
People shifted to real estate and gold as safe havens as ers, policy makers
their investment in equities lost more than half the value. and eminent profes-
sionals came to-
The increased demand for real estate between 2009 and 2013 saw prices double gether to discuss
in some markets. However real estate was the second-worst performing asset ways and means of
class in 2014 after gold. One of the biggest reasons for this was the flurry of funding the real es-
new launches in 2010-12. As a result, supply is more than demand in most parts
of the country. tate business as a whole and meet
the vision of 'housing for all' by 2022
Govt contracts with World Bank for funding of smart in particular with many innovative
cities, AMRUT plan suggestions.

The World Bank is in talks with the government to provide some initial funding The 2-day high level Real Estate and
for the latter's smart cities programme and the AMRUT Infrastructure Investors' Summit
initiative for urban revitalisation. 2015 organised by NAREDCO in as-
sociation with APREA-Asia Pacific
"The World Bank is in discussions with the government to Real Estate Association saw a very
provide some funding in the initial stages for the smart cit- intense level of discussion on how to
ies and Amrut (Atal Mission for Rejuvenation and Urban fund the real estate projects so that
Transformation) programmes," the bank's country direc- Smart Cities, Affordable Housing and
tor Onno Ruhl told reporters . housing for all become reality in the
minimum time frame.
"India's urbanisation drive will be the biggest of its kind in the next 30 years.
The government's implementing of the 14th Finance Commission recommen- Shri Sudhir Mungantiwar, Minister of
dations will help in devolving finances to states for the programme," Ruhl said. finance and planning, and forest de-
partments who was the chief guest
The Govt Portal will Offer a New Window for residen- mentioned that the 'single window'
tial properties clearance is the priority of the gov-
ernment and the developers will re-
The government is set to launch one of its own, initially with about 50,000 resi- ceive faster clearance resulting in
dential properties that can be bidded for online. quicker delivery and at reduced cost.
People should invest in Real Estate
These are properties that debt recovery tribunals (DRTs) have allowed banks to and developer community should ex-
sell through auction after their owners defaulted on loan repayment. The gov- ecute projects with seriousness which
ernment portal, which is yet to go live, will provide details such as the pictures is time bound, the minister added.
and floor area and allow anyone to bid directly after electronically making the
earnest money deposit. In his key-note address, Mr.Sunil
“We will list all such properties where there are no encumbrances and hold Mantri, Chairman NAREDCO and
auction for them ,“ said a senior government official with knowledge of the Chairman Mantri Realty Ltd., observed
matter. “As of now, we have around 50,000 residential properties which are that the foreign funding was need of
ready to be auctioned,added the hour to meet the long term capi-
tal requirements and the real estate
The purpose of setting up a portal and holding electronic auctions is to make sector will have to source funding from
the process fair and transparent. “We had earlier received reports that in some both private equity players and non-
cases auctions conducted by DRTs are controlled by certain groups and general banking finance companies (NBFCs).
public is not able participate in these auctions,“ the official said.

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