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All you need to know about Modi’s Mantra For...

All you need to know about Modi’s Mantra For Real Estate

narendra-modi-Superise

Narendra Modi has a vision, and it is to make sure that India flourishes in every way. In 2014, the newly formed “Modi sarkar” took charge. In their manifesto, they touched upon issues specific to the real estate sector. Some of them were:

  • Affordability
  • Delayed construction projects
  • Prolonged litigations surrounding real estate projects

And who was most affected by the laxity of and loopholes in the functioning of the government? The common man. In the manifesto released in 2014, Modi sarkar vowed to resolve all these problems and revealed aggressive development plans that struck the right chords with the public.

The new government emphasized much on affordable housing and also promoted real estate investment as a viable option as it foresaw a significant rise in the prices.

In an editorial in MoneyControl.com two years ago, Santhosh Kumar, CEO – Operations, JLL India mentioned that the immediate problems related to this sector to curtail were:

  • Reversal of the land acquisition act
  • Clearance of pending receivables to the private sector through quick decision-making
  • Provision of fiscal stimuli to accelerate industrial growth
  • Creation of investment-friendly real estate market through lowered interest rates and increased employment generation

During that time, there was an immediate need to ease land acquisition parameters so that buying a piece of land was free from hassle. And because of enhanced demand and poor supply, the real estate prices naturally escalated.

To amp up the bleak scenario in that sector, Modi made three promises:

  • Development of 100 smart cities
  • Formulating and executing a new land policy
  • Ensuring low-cost housing

It has been two years since these major development plans were announced. What’s the update on them? Superise.com brings you all:

  1. Development of 100 smart cities 

    smart-city

Almost every second day, you would get to read about the “Smart Cities Mission” in the newspapers. And that is because that is really happening! In the beginning of this year, Modi government announced 20 cities out of 98 cities shortlisted for this mega project.

Some of the cities are Ahmedabad, Bhubaneswar, Pune, Indore, Jaipur, Chennai and Bhopal. A maximum number of smart cities will be set up in the most populous state of our country – Uttar Pradesh, followed by Maharashtra and Tamil Nadu.

Modi sarkar has belted out INR 480 billion for this ambitious project, where INR 50,802 will be invested in the next five years. In addition to this, the plan has been set in motion for Bhubaneswar, followed by Pune and Jaipur.

  1. Formulating and executing a new land policy

new-land

Modi has received much criticism for bringing new amendments in the Land Acquisition Bill (that involves rural lands), with some of the politicians even calling the government’s efforts “anti-farmer” and “pro-industrialists”. One of the alternative proposals pushed forward is leasing the land.

This is said to support sustainable project development as the lands need to be returned to the landowners once the contract gets over in a condition similar to its original form and without it causing environmental degradation.

The government recently decided not to re-enforce the ordinance to amend Land Acquisition Act, 2013. The joint committee of parliament which is currently examining the bill has been granted a sixth extension of its term of four months.

The future of “land” is yet to be decided.

  1. Ensuring low-cost housing

low-cost-housing

Affording a home is every person’s dream and Modi promised just that. With the implementation of an affordable housing policy, he showed a $150 billion business opportunity to the real estate sector.

Besides, the government also rolled out “Housing For All” programme to build 2.95 crore rural houses by 2022. The aim is to ensure a “pucca” house for every family by the 75th anniversary of independence. An amount of INR 81,975 crore has been set out to instil a wave of proper housing the rural areas of the country.

Under the same scheme, semi-urban towns and cities in Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh and Rajasthan to name a few have been selected to ensure that the middle-class families can also afford a home.

It is safe to conclude that the government has taken baby steps towards the development of the real estate sector and to remove the problems prevalent in India. What’s interesting to see is how it manages these ambitious projects and policies in the coming years.


Author: Asavari is a Marketer who believes in the power of pure, good Content. A multitasker by nature, She strategizes, writes & manages Content & Social Media for a variety of startups and online platforms. You can follow her on Twitter: @asavarish.

 


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