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Press release

30 NOV 2017

RERA will have a transforming effect on the real estate sector

The conferring of industry status to affordable housing, the insolvency bill and the Goods and Services Tax have created an environment to resolve all the miseries of the real estate sector, Shri Hardeep Singh Puri, Union Minister of State for Housing & Urban Affairs, Government of India tells the RICS Real Estate Conference 2017.

Inaugurating the conference held in New Dehli on 15 November, Puri hit out at "fly-by-night" real estate developers, promising an eco-system to ensure a transparent real estate market.

Puri, speaking at the inaugural session of the conference titled 'Policy, Reform and Regulation: The backbone of Indian Real Estate', supported by CBRE as the Knowledge Partner, said:

2016 saw a series of policy and procedural reforms being introduced and implemented by the Government which had a direct impact on India’s economic performance. Demonetization by far was one of the hardest hitting reforms’ introduced in the last financial year.

The RICS Real Estate Conference 2017 examined how policy and procedural reforms such as demonetization, RERA and GST pave the way for an efficient, robust and healthy realty market. Panel discussions that brought together industry stalwarts and experts under one roof examined the role of the Government in paving the way for a more transparent and professional sector, in addition to how the private sector has had to adapt to changes.

"Policy reforms are critical to the Indian real estate market. The UN predicts that India’s population is expected to surpass China and reach 1.5 billion by 2030. Urbanisation is a top challenge for India. Meeting the needs of urbanisation will require innovative models of urban development. The government alone cannot rise to this challenge. India would need to spend billions of dollars to address the urbanisation phenomenon. All the markets are competing for investment. India needs to promise a more professional and transparent market to attract this investment. Standards and professionalism are the bedrock to instil confidence in the market. RICS can help in this. We stand for consistency in standards and we want to use our reputation to effect policy change." Dr. Sean Tompkins – Global CEO, RICS
"Real Estate (Regulation and Development Act, 2016) is a pioneering legislation and will have a transformative effect on the real estate sector. And I have absolutely no doubt that when the history of Indian real estate sector is written; it will be in two segments - Pre-RERA and Post-RERA. The pre RERA era saw the dreams, hopes and aspirations of home buyers dashed by those who exploited that dream. There was very little transparency in the housing sector. Fly by night operators created havoc. There were broken promises and incomplete projects. We have now put together an eco-system where the real estate sector is governed and buyers are empowered. RERA is a response to the dire need of consumers." Shri Hardeep Singh Puri, Union Minister of State for Housing & Urban Affairs, Government of India

Greater transparency

The conference discussed and debated whether the real estate sector is moving towards greater professionalism, transparency and ethical practices. While speaking at the inaugural session of the conference, Sachin Sandhir – Global MD, Emerging Business – RICS, emphasised the changes in business environment meaning the survival of developers will eventually depend on their ability to adapt to these changes:

John Hughes FRICS – President, RICS and Founding Partner, Hemson Consulting Ltd, who recently took charge as the President of RICS, said that professionalism is absolutely critical to instil confidence in property markets:

As RICS celebrates its 150th anniversary in 2018, we believe RICS is redefining professionalism by setting and enforcing standards in the built environment space on a global basis.

The other speakers at the conference included:

  • Durga Shankar Mishra, IAS - Secretary, Ministry of Housing and Urban Affairs, Govt. of India, Dilbag Singh Sihag - RERA Haryana Committee & Chief Town Planner
  • Haryana (Retd.), Govt. of Haryana, as well as industry stalwarts such as Rajeev Talwar – Chairman, NAREDCO and CEO, DLF Limited & MD, DLF Universal Limited, Vikram Goel MRICS – CEO & National Head - India, HDFC Realty Ltd
  • S. Sridhar FRICS - Chairman, Strategic Research Information and Capital Services Pvt. Ltd. & Former, CMD – Central Bank of India and National Housing Bank
  • S.K. Sayal FRICS – MD & CEO, Bharti Realty, Sunil Agarwal FRICS - Associate Dean & Director, School of Real Estate – RICS School of Built Environment, Amity University (Noida)
  • Amit Oberoi MRICS - National Director- Knowledge Systems, Colliers International