India Ranks above China on the Transparency Index of 120 Countries – Mr Anuj Puri

Realistic Expectations to Boost Real Estate Demand – Mr Arun Nanda

Low cost housing will be possible with rationalization of taxes as tax collection from real estate has increased tenfold and consolidation of land prices which have increased by 4 times in last 5 years, mentioned Mr Niranjan Hiranandani, Managing Director, Hiranandani Group of Companies while speaking at CII’s 7th edition of Real Estate Conclave 2015 held in Mumbai. He further stated that the corporate participation in the real estate market has helped in increasing the reputation of the sector. “The Hon’ble Prime Minister has a vision of housing for all by 2022 and the industry should make its objective to releasing it. The sector for a long time has been catering the high end demand in the market and needs to reassess its strategy with the 70% of the demand existing for affordable housing”, added Mr Hiranandani.

In context to Mumbai Mr Hiranandani stated that the development of infrastructure with Cross Harbour Bridge, Metro connectivity, River project for 24 X 7 water supply and open spaces on the reclamation lands are required for growth of real estate. The 4000 acre of salt pan land in Mumbai alone can create 5 lakh units of at Rs 2000 per sq ft and improvement of the slums around the city with development in slum policy for making it effective can solve the affordable housing in Mumbai. The vision of Project Naina shared by the Hon’ble Chief Minister of Maharashtra is expected to add around 2 times the land area of Mumbai to the city making housing for all a reality, added Mr Hiranandani.

Mr Arun Nanda, Past Chairman, CII Western Region & Director, Mahindra & Mahindra Ltd while addressing the CII’s Real Estate Conclave mentioned that real estate is the only industry which has unlimited demand if there are realistic expectations. In case real estate is not sold then there is mismatch in builder expectations and the consumer demand. He also added that the sector is one of the most regulated sectors putting in huge unwarranted cost in place in turn escalating the prices. The real estate industry needs to go back to the drawing board and design products as per the customer needs for catering the customer demand. The industry also needs to take cautious steps while getting investors with unrealistic expectations on board and avert from giving into the artificial land prices of the market.

The theme of the summit Re-moulding around change was conceptualized keeping in mind the change across the globe in regions like America, Europe, Asia Pacific and China which are growing at a different pace mentioned Mr Anuj Puri, Chairman – CII (WR) Real Estate Conclave 2015 and Chairman & Country Head, JLL, India. Speaking about the construction sector he mentioned that for the year 2014 the sector was valued at USD 240 bn compared to USD 90 bn in the year 2009, witnessing a demand for residential segment at 86% and commercial at 14% in 2014. He also added that the transparency index of 120 countries constituted by JLL sees Australia leading with India ranking at 40 and China at 45 which is a good sign of Indian markets.

Speaking about the future of the sector Mr Puri mentioned that in the year 2015 the demand is expected to be better for commercial space with demand of 13 mn sq ft out of which 40% is expected from Bangalore and remaining 60% spread out in other regions. The demand from retail segment will be encouraging with participation of foreign retailers. The opening up of FDI has also been encouraging with USD 25 bn coming in through the equity route in the sector. There is also an urgent need of the sector to focus on business sustainability by bringing in trained manpower and gender diversity in the sector, added Mr Puri. 

Mumbai