Key Milestones That Have Transformed India’s Realty Industry
A real estate is any residential, commercial construction or piece of land including schools, malls, shops, houses, housing complexes, colleges, health centres etc. Real Estate is always immovable property.
A nation’s development and the quality of development can be gauged through its real estate investments and the legislations which govern that industry. It is important for the government to make laws which keep the environment healthy for investors to invest in real estate and at the same time keep the buyers also happy. Over the period of 71 years the government has come out with some key milestones which have had a huge impact on the real estate industry as we see it today.
Foreign direct Investment(FDI)
In 2005, FDI was allowed in the real estate sector. This enabled the opening of newer and more effective modes of investment in the industry. The liberalisation of the FDI policy has been instrumental in pumping up some well needed cash in the declining reality industry. The recent surge in residential complexes in Tier1 and Tier 2 cities in the nation can be attributed to an extent to FDI.
Connectivity
The government is slowly modernising and constructing new airports across the nation to increase the connectivity and make travel faster. This has led to an increase is a concept of aero cities, i.e cities which are around the airports. The infrastructure around airports is of good quality and standard.
Real Estate Regulation and Development Act (RERA Act)
The recently implemented RERA Act has been one of the key milestones in the field of real estate. It increases the accountability of the real estate developers and protects the rights of the customer. Recently a decline was observed in this industry which led to undue and unprecedented delays on the delivery of the projects undertaken by a company. This causes a lot of financial losses to the developer as well as the customer. Through this act confidence will again grow amongst the buyers and the investment will gradually increase. This will see a revival of the currently low real estate industry.
Real Estate Investment Trusts(REIT)
It was launched with the main purpose of allowing small ticket investments in the commercial real estate of the nation. As the Grade A office properties in India increased REITs offer an attractive method for investors to trade in prime real estate(commercial).
Planned cities:
In India, planned cities were a very new concept. Chandigarh and Gandhinagar were the initial planned cities which even today stand apart when compared to other cities around the country. The emphasis is back on planned cities with and this is very much visible in case of Amaravati, the new capital of Telangana; Naya Raipur, the new capital of Madhya Pradesh; Navi Mumbai etc.
Planning of cities was first incorporated by the Maharashtra Regional and town Planning act of 1966 which included some guidelines for town planning etc. soon the erstwhile Planning commission also issued its first of the many guidelines for District Planning in 1969. This encouraged many states to form their own district plans. Even though the idea was good but due to its poor implementation apart from a few model districts, not all have succeeded.
Urban Land (Ceiling and regulation) Act
This act was implemented in the year 1976 to control the hikes in land price in urban areas. It also aimed at providing housing facilities for Low Income Group (LIG) families. Eventually, due to poor implementation in most states except West Bengal and Kerala, it worsened the situation instead of improving it and hence was replaced by other schemes.
