NEW DELHI: CREDAI Western Uttar Pradesh has called for significant policy reforms to address key challenges in the real estate sector, including high land prices, project delays, and the growing need for affordable housing.
In an interaction with ETRealty, Dinesh Gupta, secretary, CREDAI Western UP, discussed the sector’s evolving landscape, challenges faced by developers and importance of government support in resolving stuck projects, facilitating registries, and promoting affordable housing. Edited excerpts:
What is the association’s vision for real estate development in the region?
As an association of promoters and developers, we seek to create an environment that supports the growth of the real estate industry by opening and establishing channels of contact with state and central authorities as well as competent authorities. From project land allocation to completion certificate, we anticipate a developer-friendly procedure.
Our goal is to give homes to everyone who wants one. Therefore, we advocate for our valued members’ demands to the government and authorities to promote ease of business in the region.
What are key factors driving demand of luxury in Western UP?
The change hasn’t happened overnight, though. Whatever is considered luxurious today was reasonably priced a few years ago. About ten to twelve years ago, we sold inventory for between ₹3,000 and ₹5,000 per sq ft, whether it was in Central Noida, Yamuna Expressway, or Greater Noida.
However, the two main causes of price increases in the real estate industry are a lack of available land and increased bidding for the land bank that is available.
Developers have been forced to shift their focus to developing limited units of larger sizes due to several factors, including rising costs and a shortage of skilled human resources, a rise in the cost of raw material, the need for new technology, the need for larger units following COVID, the option of Gurugram following a quick infrastructure boost, and the GRAP ban.
As a result, developers are adapting to the evolving situation. Since it’s an open market, if one party is willing to make money, the other won’t think twice about doing the same. I don’t believe promoters will be deterred from creating affordable units if the government gives us land at a discounted price.
Is Yamuna Expressway the next big housing hub? What are your recommendations to establish a perfect housing destination?
Numerous people in various categories are finding work as a result of the timely completion of Noida International Airport and the establishment of a manufacturing hub based on the Production Linked Incentive (PLI).
The government is considering connecting the airport to Indian Railways, the metro, and semi-high speed rail in order to enhance connectivity and facilitate commuting. A place with Yamuna Expressway, a means of transportation and employment, has a greater chance than any other to develop into the ideal housing hub.
For stuck projects and pending registries of occupied units, what are the major policy or regulation you expect?
The SWAMIH fund 2.0, which the government has allocated ₹15,000 crore for, is anticipated to meet the needs of numerous mid- and affordable housing developments in the area. Recent modifications to the insolvency procedure, in my opinion, will expedite the resolution process.
Here, prompt action by the appropriate authorities is required to approve the projects’ construction and sale. I will implore the government to authorize a registry of units in finished projects, permit map revision to finish the remaining work, and allow OC/CC by the laws for the benefit of homebuyers and the growth of the sectors.
What are your recommendations for promoting in the Western UP region?
Without government assistance, affordable housing development will not be feasible. Uttar Pradesh requires a scheme similar to Haryana, in which the state government allots land for the construction of reasonably priced developments.
I think UP’s scope is superior. For such developments, the government can also enlist private developers through NBCC or schemes. Additionally, since the housing society cannot afford a budget of ₹45 lakh, it is essential to update the definition of affordable costing. Based on market demand, the price of a 1,000 sq ft unit should be increased to ₹55–60 lakh, as the average cost of building has increased to ₹3,000 sq ft.
Are builders responsible in any way or is it just government or policy’s fault?
Government initiatives and policies always remain the same for all stakeholders. However, under the current situation, a case-by-case approach should be used to fully settle the issues. Benchmarking won’t be able to address legacy problems in real estate. After addressing each one individually, a standard for the future should be established.
As previously said, promoters’ reluctance contributes to several problems, yet in many instances, stringent regulations and requirements have compelled promoters to regress. As a result, policies ought to be adaptable to situations in which the general public’s interest has been served. Before implementing such a strategy, CREDAI’s pre-intervention will provide a more workable answer than anticipated.
