Despite being the chief driver of the economy and the second largest job provider in the country, the real estate sector suffers from a credibility deficit among homebuyers and should therefore focus on improving its image, said the Prime Minister, Narendra Modi at a CREDAI YouthCon 2019, event recently.
He expressed concern over the credibility of the sector and asked developers to improve their image that had been impacted by defaults by some builders. He also asked the developer community to target the ‘new middle class’ as a large number of people were emerging out of poverty.
“Now is the time, the target should be on neo middle-class category, whose aspirations need to be understood as they are a large market waiting to be tapped for the sector,” he said. “Real estate sector plays a catalytic role in providing employment. Do you get enough respect? Who is responsible?” he asked. The Prime Minister said that that centre has been trying to bring a positive change in the sector during the last four-and-half years.
Demonetisation curbed use of black money in the sector, he said, adding his decisions face problems in the beginning as he thinks ahead of time. “Due to demonetisation, the avenues of escape through real estate, for those who have been able to profit due to corruption and black money, have been blocked.”
He also said that the government is constructing homes under the Pradhan Mantri Awas Yojana (PMAY) at a rapid pace to fulfill its ambitious target of providing housing to all by 2022, adding that 1.5 crore houses for the poor have been built at twice the speed to realise this target.
He said there is no corruption in identifying the beneficiaries under the PMAY. “By 2022, all homeless will get a house. We do not make tall claims. Under the previous government, 8 lakh houses were built in 10 years for the urban poor, but in four and a half years, we have built 15 lakh houses,” he said, adding that under PMAY, houses have become bigger, with necessary amenities in place.
Modi said the government has provided a credit linked scheme, which could provide savings worth Rs 5-5.5 lakh on housing loans for the middle-class. The new realty law RERA and benami property legislation have helped in bridging the trust deficit between builders and consumers. He said.
“Since the introduction of RERA, close to 35,000 real estate projects and 27,000 organisations have been registered. There has also been progress on the ease of doing business front and construction permits are being given at a faster pace,” he said.