CREDAI to discuss the importance of housing sector in GDP with policy makers

Housing is one of the basic needs of every individual as besides providing shelter and security, it also enables easy access to the credit market by working as collateral comfort / security. The urban population of India has been growing at a rapid pace. As per the Census 2011, 31.16 per cent of the total population is in the urban areas. The shortage of housing units for the urban areas for 2012 is estimated at 18.78 million units. With time, there has been expansion and improvement in the housing finance market by way of various financial reforms; however the housing loans as a percentage of GDP have remained at around 7 percent, significantly lower than the levels achieved in most of the developed countries. The major policy concern with respect to housing as well as housing finance market is the mismatch between the demand and supply of housing units and the financial solutions available for the same. On the demand side factors like growing middle class, income levels of the people, cyclical condition and urbanization, and on the supply side factors like the lack of availability of land, finance at reasonable rate, infrastructure, legal and regulatory framework and the limitations of the private and other stakeholders to provide low income housing play a major role. Also “Affordable Housing” has serious implications for the country's housing sector as the wide gap between the demand and availability of housing units can be narrowed down only by way of affordable housing. The same requires appropriate funding models within a regulatory framework and pro active participation of all stake holders so as to improve the availability as well as the quality of housing in India.

CREDAI- Confederation of Real Estate Developers’ Associations of India the first and only apex body of the real estate industry will discuss the agenda in India’s biggest conclave of real estate Industry – CREDAI Conclave 2013 under the theme – Housing the real game changer in the presence of eminent dignitaries from Govt. of India, eminent corporate personalities and senior policy makers. The conclave will also highlight the perspectives by international investors, developers and thought leaders.

The conclave will examine case studies on impact of real estate on GDP of a major emerging market economy. At the same time, Conclave will present young India’s vision for an urbanized India who holds the most important share in the economic growth though participation and employment opportunities. Bridging the great urbanization divide Conclave will connect on the Concerns of tire II and tire III Indian cities and will raise the issues of those developers who are equally important in overall growth of the sector and the democracy.

CREDAI Conclave 2013 to be held on 13^th and 14^th December, 2013 at JW Marriott, Aerocity, New Delhi. Follow the link below to register now.

http://www.credai.org/

India will witness biggest Conclave on Real Estate sector in 2 days

India’s stupendous economic growth in the first decade of the 21st Century stands challenged in today’s day. From a 10.5% GDP in Q4 of FY 2005- 06 down to 4.8% to FY 2012- 13 has had tremendous impact, not just on the actual market scenario but on the sentiments of the economy. Most major contributors performing below expectation including primary and secondary sectors and devaluation of the Rupee against dollar have also compounded the situation.

Within the real estate sector, housing is one of the few sectors of the country that is nearly completely dependent on the domestic demand and the real estate sector can prove to be a blessing for Indian economy as it has been contributing around 5-6% share of the nation’s GDP each year. With majority of the sectors growth coming from the residential development, the potential demand for real estate in India can only go northwards given the current estimate of its population growth.

The housing demand boosts numerous other industries involved in manufacturing of cement, steel, iron, glass, electrical and electronic goods, paints and chemicals, wooden goods, plumbing goods, etc. and economic activities such as mining, brick making, sand collection, timber-related, amongst many others. As per the National Housing Bank, the sector ranks fourth in multiplier effect and total housing loans would add up to only 7% of the GDP, far lower than levels in most developed countries across the world.

As per Cushman & Wakefield, based on past population growth trends alone, India will need additional urban housing of approximately 12.8 units in the next five years (2013 – 17) at an estimated building cost of approximately INR 13 - 19 trillion, clearly indicating the size and potential of Indian real estate market. Thus the potential of the Real Estate sector to create a positive and wide spread impact on the growth of the Indian economy should be recognized and encouraged at all levels. In keeping with this backdrop, CREDAI & Cushman & Wakefield feels that the Housing sector can be the ‘Real Game Changer’ in leading India’s GDP growth back on its double digit path. Should the sector be given its correct fillip through governmental and policy decisions, the sector could as well prove to be the growth propeller for the country.

In this conclave 2013, CREDAI and Cushman & Wakefield, seek to understand how the potential of the housing sector can be maximized to ensure it contributes to its best capabilities towards the country’s economic growth. The specially designed sessions will bring together the stalwarts of the industry and economy in general who will help the industry stake holders to understand and help them chart out a brighter future for the sector. It will also take a look at a few examples from across the world where housing has performed to much greater potential. ‘Housing – The Game Changer: leading to double digit growth’ is set to be a forum with a mission increase the potential of the housing sector.

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Fore more information, please visit- www.credai.org

Demand of Housing to brighten the future of real estate industry

The demand for housing continues to increase, with a larger number of people looking for homes closer to their work place and other amenities. With this trend at the heart of its exhibitions, CREDAI (Confederation of Real Estate Developers Association of India) the first and apex body of real estate developers in India will host CREDAI Conclave 2013 on 13th and 14th December at JW Marriott, Aerocity, New Delhi.

To sort out various problems and constraints of the sector, the forum is organizing National Conclave 2013 on December 13- 14, in New Delhi. The policy makers and industrialists from the sector have been invited to join the conference, where draft guidelines will be prepared to overcome the problems.

Real estate has become the largest industry in the state while it is holding the second position in the country. CREDAI feels that reforms in the real estate industry, such as bringing in more transparency and setting up of regulatory body, would boost foreign direct investment (FDI) in the sector by at least 20 times. The inflows would be mainly from the US, Europe and Gulf countries for setting up of large residential complexes across India.

The Real Estate Bill, 2013, seeks to set up a regulatory authority to protect consumers and promote the real estate sector. The bill was tabled in the monsoon session of the Parliament and has been sent to a standing committee for further suggestion.

The two day Conclave will host policy makers, government representatives, politicians, real estate developers, influencers, real estate professionals, along with reputed bankers/housing finance institutions this year. With the participation of banking and finance institutions in the exhibitions, potential home buyers will get an opportunity to immediately understand how the finances for a particular project will work.

With offers on interest rates and processing fees, the prospect of buying a home gets better with these exhibitions. CREDAI invites its members and real estate professionals at all levels across the globe to participate in the Conclave and understand the future of prospering housing sector in the real estate industry.

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HOUSING is the future of Indian Real Estate Sector

According to newspaper reports, Indian enterprises, during the course of last few years, have accessed significant amounts of foreign debt. In 2011-12, Indian companies raised a borrowing of about US$ 36 billion. Further, borrowings in September 2012 were recorded to be US$ 2.78 billion. According to the Reserve Bank of India (RBI) data, most of the borrowings were for import of capital goods, modernization, new projects and rupee expenditure for import of capital goods. Foreign investment has been one of the major sources to boost real estate sector in India. Foreign investments comprises of investment in capital and investment through borrowings which can be through Foreign Direct Investment (FDI) or External Commercial Borrowings (ECBs) which is governed by government.

Keeping in view the need of the time and desire to invest in housing there has been an announcement by the Finance Minister in the Union Budget 2012-13, the Government of India, under the process of reviewing and liberalizing the policy related to ECB and to meet the objective of providing housing for low income groups, allowed ECB for low cost affordable housing projects. Affordability being the keyword of the real estate sector this year has been a focus of government and other non- profit organizations who are working to promote the concept among the builders.

Real estate body CREDAI is organising a two-day Conclave on “Housing, the game changer-leading to double-digit GDP growth,” in New Delhi during December 13-14. The event, being hosted in the backdrop of general economic slowdown, pressure on real estate sector and tough environment to raise funds for new projects and high interest rates, seeks to finds ways to gain momentum contributing to the growth of the economy by all means.

Propelled by the rapid urbanization, the urban population is poised to grow to 590 million by 2030. McKinsey Global Institute reports that the urban India, over the next 15 years, is expected to create 70 percent of all new jobs and these new jobs are going to be twice as productive as equivalent jobs in rural sector.

CREDAI has impressed upon the government authorities to cut down the delays and institute “Single-window and Online Approval System”. The elimination of delays in sanctioning will drastically reduce the costs of house-construction and speed up the construction activity with substantial economic benefits. This is another the CONCLAVE will address.

The CREDAI holds the view that this  Sector, being the primary driver of the economy can fast forward the economic revival, provided the government wakes up to the unfolding potential of the Sector and takes necessary policy initiatives. The government has however initiated several policy moves in the form of Real Estate Regulatory Authority, Land Acquisition Bill, Real Estate Investment Trust, Affordable Housing policy. But these policies are not without any inadequacies in their nature and character. The CREDAI has been proposing to incorporate several changes in some of the policy initiatives of the government and plans to address them in this Conference.   

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