Why Realty Business In India Needs To Be Focused On Regulatory Reforms?

The introduction of real estate policies in India had a huge impact on the overall performance of this industry in different parts of the country. Not just in metropolitan cities, reforms were also quite substantial in other areas nearby to metro locations. After a tricky business by real estate since the past few years, government has now planned to stay away from controversies and instead build a regulatory model that could help protect its integrity. 

This interesting step was taken much after India had seen its downfall in the real estate business in 2008. However, there was no looking back for the country after that as it soon realized that no such business could ever function without appropriate rules and regulations.

Real estate in India has always been more on the unorganized side as there was no legal body to empower its every move in the industry. This scenario is soon going to change and we have already been witnessing quite a few changes from this year itself. For example, the introduction of Real Estate Regulatory Bill, which was mentioned way before in 2013 has now found its place in the rulebook of Indian constitution.

Apart from these changes, a major part of the regulatory system is the initiation of Real Estate Investment Trusts (REITs) that was focused in enhancing the current trends in real estate business model of India. 

The trusts were formed so that there could be a faster process of bringing more transparency in real estate and reshape modern infrastructure with well-planned tasks. On the other hand, REITs are proving out to be extremely beneficial for developers who are either in need of capital to build new projects or are under huge amount of debts to pay. 

The Land Acquisition, Rehabilitation and Resettlement (LARR) Bill, which was also a step towards impending development on the part of Indian government, soon became on the most talked about reforms of the country. The policy has become so important because of the fact that land acquisition has always been a major challenge for builders, which sometimes became a reason for project cancellations.

As almost all of the metro cities of India play a huge role in the social and economic status of the country, the government decided to launch an initiative ‘Smart Cities’.  With urban areas accounting to a large portion of India’s GDP, the Smart Cities scheme is targeting towards achieving a more organized infrastructure in terms of urbanization. 

Talking about the future prospects of this scheme, it is estimated that it is only going to function smoothly if there is a tie up between government and private sector in near future.