Page 15 - Banking Finance January 2020

HOUSING

HOUSING

NEWS
NEWS
NEWS
NEWS
NEWS

India's buildings sector MahaRERA high on registration, low on grievance

to expand by 6.6% next redressal
year driven by fiscal sup- Maharashtra may enjoy the top slot among states when it comes to registration
of real estate projects and also in terms of com-
port, govt policies: Fitch plaints it has disposed off. But that is where the dis-

Fitch Solutions said it expects the tinction ends. The state has no information that will
country's residential and non-resi- help make the consumers' buying decision easier.
dential buildings sector to expand by The action-taken-report remains missing and the
6.6 per cent, in real terms, next consumers and lawyers are mostly unhappy with the
year, driven by fiscal support and a implementation of those orders.
continued focus on the provision of This also emerges from a basic duality in the intent of the law that mandates
affordable housing in urban areas. that the authority play a regulatory as well as a developmental role. "We can-

"Short-term expansion of India's not punish a developer completely, as he is already struggling. People think
building sector will be driven by a Maharashtra Real Estate Regulatory Authority (MahaRERA) is a consumer fo-
mixture of fiscal support and govern- rum, where we also have to make sure that the industry flourishes," a senior
ment policies supporting the housing MahaRERA official said on being asked why the penalty is not imposed on the
market, as well as heightened activ- errant developers as provided for in the law.
ity within the logistics, retail and in- Sources in the industry said it's mostly known where and with which developers
dustrial buildings sectors," it said in the faults lie. "Even disclosures on MahaRERA website are full of inconsisten-
a statement. Long-term growth, on cies," a source said.
the other hand, will mainly be driven
by country's massive population, The Rise Of Buy-To-Let Properties
which requires continued invest-
At an uncertain time like this, buy-to-let properties present a window of oppor-
ments into residential building con-
struction sector, the statement said. tunity for realty developers and investors. These
can include family rental homes, student ac-
Instances of stalled housing projects commodation facilities and co-living spaces. The
have been on the rise over the course
skyrocketing property prices make
of 2019, due to a credit crunch
homeownership out of reach for a large percent-
sparked by a series of defaults by non-
age of India's population. Millennials and Gen
bank financial companies, resulting in Z, in particular, prefer to take property on rent,
a decreased access to funding for rather than buying. This has resulted in heightened demand for rental houses,
both developers and homebuyers. subsequently promoting more realtors to turn towards the buy-to-let model.

BANKING FINANCE | JANUARY | 2020 | 15