National Real Estate Ddevelopment Council (NAREDCO) has launched its ninth chapter in Punjab. We have spoken to President Parveen Jain about this new initiative of Naredco and how it will help in providing the much desired boost to real estate sector of Punjab.
What is the prime objective behind launching a State Chapter in Punjab?
NAREDCO is a national platform where all the issues concerning the Real estate sector are put forward, discussed and resolved with the government. NAREDCO has been very successful in getting its recommendations implemented by the government, the recent being Infrastructure status allocated to the Affordable Housing sector.
The prime objective behind launching a state chapter in Punjab is to resolve all the local state issues and problems being faced by the end-users, developers and Real estate sector of Punjab in depth at the state level and to seek government’s support on regulatory issues for the growth of Real estate sector of Punjab. This will prove to be a boon for the people of Punjab as they can air their issues and problems to the Punjab chapter which can do proper analysis and can understand these issues at the local state level and resolve them dexterously.
With Naredco launching State Chapter in Punjab , how will it benefit the buyers and the developers in the coming days?
Punjab state chapter will be in the best position to understand, analyze and resolve the local issues and problems being faced by the buyers and developers of Punjab more than anybody else. This way it will become much easier for the buyers and developers to air their issues, grievances and recommendations for the growth and development of infrastructure, Housing and Real estate of Punjab as an entity. By understanding and resolving at the local state level issues concerning infrastructure, housing, Real estate it will pave the way for very fast development and growth of Punjab as a whole.
Naredco already has a presence across eight States in the Country including Delhi, Maharashtra and Karnataka. How do you plan to expand your footprints in Punjab? Are the local developers (members of NAREDCO Punjab) going to play a pivotal role in establishing the base? Name few members as well.
Yes, the local developers are going to play a pivotal role in establishing the base and improvement of real estate of Punjab as they are the best persons to know what issues, concerns and problems occur in Real estate of Punjab and they would be the best to suggest and recommend how to solve them and what measures should be taken for the improvement and growth of the real estate of Punjab. The local developers can initiate a dialogue with the state and the national government through NAREDCO to sort out all the concerning problems and issues.
By taking these actions, NAREDCO’s footprints shall be expanded automatically. The newly launched chapter has around 15-20 local development firms as members.
2016 was an eventful year, with a number of policy and regulatory announcements. Can you throw some light on the policies that were taken into consideration by the Government? What has been the role of NAREDCO in contributing its bit in the implementation of these policies at their Pan India chapters?
2016 was a very eventful year and there were number of policies, regulatory decisions were taken on suggestions and recommendations of NAREDCO to the government. The first and the foremost major point is that ‘Infrastructure status’ as insisted by NAREDCO has been allocated to ‘Affordable Housing’ by the government. The criteria for Affordable housing are not the built up area but the carpet area whose upper limit has been fixed at sixty sq.m. The completion time period for the Affordable Housing has been increased to five years from the earlier three years. Now the tax shall be levied on Joint development agreement only after the completion. Also now the notional rent shall be levied only after one year of completion. The long term capital gain tax shall be applicable after twenty four months. Besides, the indexation shall be applicable now from the year 2001.
Having been given Infrastructure status to the Affordable housing sector shall boost the real estate sector tremendously due to various advantages it offers giving a solid push to the supply of affordable housing to meet the ever increasing demand of the masses and in consonance with the government’s mission of ‘Housing for All’. Policies like RERA ( Real Estate Regulation Act ) shall streamline the procedures in a systematic way and REITS ( Real Estate Investment Trusts) shall inculcate the interest of the investors in Real estate to a great extent reviving the market.
A Policy is successful only when both buyer and developer are satisfied. Do you think that these policies will be beneficial for both the buyer as well as the developer?
Yes these policies are majorly buyer and developer friendly, the biggest of them all being the Infrastructure status to Affordable Housing and its associated benefits. Affordable Housing demand is the maximum in today’s scenario for the masses and by these policies, more and more people shall be in a position to afford them and for the supply part the developers have also been placed in an advantageous position to go for the Affordable housing and reap good results. RERA (Real Estate Regulatory Act) has been brought in to streamline the process in a systematic way and REITS (Real estate Investment Trusts) will inculcate more interest in people to invest in Real estate.
There is a mammoth slow down in Punjab Real Estate Sector. As a result, people are skeptical about investing in the State. Do you expect the scenario to be better in 2017?
Yes, the scenario is expected to change for the better in the coming times due to the newly launched NAREDCO chapter of Punjab and due to the new policies like RERA, REITS etc as explained above.
The Indian Real Estate Industry has immense potential. According to you where does Punjab stand when it comes to the Real Estate Sector?
As discussed above, the situation is going to improve for much better times for growth and development of infrastructure of Punjab positively utilizing the immense potential which the Real estate has.