A mixed bag of solutions for business development

Imagine we are living in 1980s or 1990s. Most of us cannot even imagine that, as there was no smart phones, no Facebook, no online business. There was a time when we had to run from pillar to pillar to get a single task accomplished. But, the wave of LPG- Liberalisation, Privatisation and Globalisation changed the scenario, both as a service provider and as a service receiver. Currently, we are at the beginning stage of the present millennium and the opportunities we get for developing as a business magnet are ever-expanding. This has given birth to an equation in the relationship between the sellers and buyers.

With internet revolution, business transactions started happening through this virtual world. It has not been confined to commercial activities alone; but, started redefining personal relationship also. People started literally living in the web world. An ample of time has been spent by every individual on internet. To exploit this opportunity, all the business firms started owning websites, and do corresponding promotion for the same. As everything is accessible very easily in the current world, people   take utmost care in displaying their world, be it governance, business, art, literature or any other segment. 

For utilising this occasion, many real estate companies have come up to serve the needs of their clients. But, many of them limit their services only up to making building and development, etc. This is of little use for any emerging enterprise or individual, as it only gives birth to a website; but, no nurturing. In this way, many of such websites have encountered an early death. In this segment, “Mona Townships”, a real estate company, stands apart by providing a mixed bag of services, which serve the client’s requirements.

Mona Townships has become an excellent example of such service provider who proffers all related services needed for a customer who buy a home or office space.When we first come to real estate market, it has become a very familiar term. From large multinational companies to small business firms. People used to love ‘good looking’ building, when it comes to the design part. But, gone are those days. 

With this, commercial property comes as a package. With new possibilities, people like to try new ideas. Commercial property may be good option for investment.Most of the real estate companies ignore the importance of client view and on time possession. A great services is essential for highlighting the standard and reliability of a company. Images alone will not work; but, they have to be supplemented by rich and crisp content, which gives accurate information about the building or apartments of the company. Besides, online marketing have become extremely vital for the existence of any organization in this tight competitive world. Online marketing is basically done for increasing the visibility of your business. Only if it comes on the first page of any search engine result, visitors repose trust on your company.

Understanding all these, Mona Townships has been renowned as a leading real estate company in Delhi, promising all the services essential for the birth and growth of a business.

Can the recent Real Estate Bill help recover the property sector in India?

Till the 1980s, real estate sector was largely the province of State institutions with very limited role of private promoters. With the economic liberalization, private sector has been given a deliberate boost in construction industry and the sector today is appraised to contribute immensely to the country’s GDP.At present, this sector is largely unregulated and cloudy, which hardly gives the consumers the complete information.

 

At this juncture, the long awaited Real Estate Regulatory Bill has been viewed as a boon. It incorporates a handful of new recommendations, which has been approved by the cabinet, and recently by Rajya Sabha.The Real Estate Regulation and Development Bill has been projected as a spearheading initiative to protect the consumers’ interest, to ensure fair play in the sector, and speed up the timely execution and delivery of projects. This has come at the time of piling up of inventories that pulls down the progress in the Indian real estate sector.

Many progressive alterations have been made in the original draft for adapting to the changing scenario. Some of the major amendments are mentioned below:-

·         Creating an escrow account for a real estate project was a part of that initiative, which did not subsist before. This demands a real estate developer to maintain a minimum balance of 50% of the funds collected, which will be pooled for development of the project.

·         The bill puts a clutch on the developer’s liberty to make changes in the original plans of the projects, after registration. 

·         It includes commercial office projects, which was not embraced in the law before. Though 85% of the Indian real estate market consists of the residential sector, it helps the sector to open up more opportunities for the flourishing business.

·         Real estate brokers and agents are also incorporated in the amended bill, which is likely to put an end to the foul play in the sector.

·         It promises the customers to approach the consumer courts in case of any grievance. This assures speedy adjudication of disputes.

Besides, these measures are undertaken to boost up domestic and foreign investment in the sector. Hence, through private sector participation, this start off can facilitate the government in achieving the goal of ‘Housing for All by 2022.’

With the forward looking amendments raised in the bill, it is being perceived as a strong tool to make the fortified Indian real estate sector transparent and accountable by significantly reducing frauds and delays. Making this sector alive by giving teeth to the law, it enhances the confidence of people in investing in real estate, which has been hitherto viewed as a den for parking black money.

How far does Realty Sector affect Indian Economy?

Being a vital component in the Indian economic ecosystem, real estate has been appreciated as the second largest sector that generates employment, after agriculture. With a great potential to drive the economy forward, it is estimated to expand at a rate of approximately 20% annually, by contributing nearly 5-6 % to the GDP, which is further expected to touch USD 180 billion by 2020. Apart from the direct impact on employment generation, this precinct enables the development of its ancillary industries such as cement, steel, paint, bricks and other building materials. Taking the quantum of homeless people and the government’s initiatives in providing them shelter by 2022, this sector is all set to have a long ride. 

 

Since 2004, real estate has been witnessing tremendous ups and downs. When the developed nations observed saturation in its infrastructure segment, India exhibited unfathomable potential in the respective sector.  This, followed by government’s approval for private FDI, gave nerve to many real estate investment companies to enter into the Indian market, which became an impetus for further expansion of the real estate sector in specific, and economy in general. This developmental approach spurred the country’s expedition from a developing to a developed one by expanding the state of infrastructure development, buildings, townships, shopping malls, residential and commercial complexes etc. 

The sector touched its pinnacle in 2007, by displaying an extensive blooming in foreign investments than ever before. In 2008, the recession that hit the globe literally collapsed almost all developed and emerging economies. As Indian economy is more or less insulated from the repercussions in the international market, we were stationed at a safer haven. Nevertheless, Indian real estate took a reverse gear for not getting entangled in the labyrinth of economic crisis, which was followed by a drop in the regular inflow of FDI.

By 2010, union government started taking efforts in constructing affordable houses for all. Currently, the trend of owning apartments or houses are in rise, rather than staying on rent; and this gave the demand for residential segments yet another boost. In terms of FDI inflow, real estate emerged as the fourth largest sector, with the government’s progressive efforts for the embellishment of this segment. With the announcement of 100 Smart City projects; raising of FDI limits for townships, settlements development projects and the real estate projects within Special Economic Zone (SEZ) to 100 percent; guidelines for investing in Real Estate Investment Trusts (REIT) in non-residential segment; higher allocation of fund for housing and urban development etc. gave extra momentum to the field.

All the positive indications in the domain, along with the emergence of nuclear family, rapid urbanisation and rising level of household income are probably the decisive drivers for the growth of real estate in India. According to National Skill Development Corporation (NSDC), real estate and construction sector is discerned as the prime employment generator in India, with the maximum rise in human resource requirement during 2013-2022. Having profound backward and forward linkages to more than 250 ancillary industries, the sector continues its perpetual transformation from being a disintegrated to an organised sector. The growing stature of India in the global platform stipulates the sector to hold denser responsibilities on its shoulder in the years to come.

Land Acquisition Bill- Boon or Bane for Realty Sector?

For regulating the process of land acquisition, Indian government has been in the process of passage of the LandAcquisition Act, 2013, which stipulates rules for granting compensation, rehabilitation and resettlement to the affected people in India. With the intention of bringing transparency to the process of acquisition of land for setting up buildings or factories, infrastructural projects etc., the act promises fair compensation to the affected persons. The scope of this Act extends to all land acquisition done by central government and state governments, except in the state of Jammu & Kashmir.

The multi-folded objectives of the Act include ensuring a participative and transparent process of land acquisition for developmental activities in consultation with local bodies, providing just and fair compensation to the affected families,  making sufficient facilities for their rehabilitation and resettlement, and ensuring that the affected persons to be the partners in development. The Act authorises the government to acquire land for its own use, hold and control, and to transfer it to private companies for public purpose. However, the Act restricts any acquisition of multi-crop irrigated area. In case of any acquisition of such area, the state is liable to develop an equivalent area of cultivable wasteland for agricultural purposes.

This had a bad impact on the sectors like power and infrastructure. In the age of rising population and rapid urbanisation and industrialisation, it stayed as a question mark in front of such sectors. As infrastructure is termed as the driver of development, the act came as an earthquake in this sector, resulting in the slip down of stock market.

Flats in Zirakpur, Punjab

In 2015, the Act was thrown into controversy, when it was amended to address industry concerns by diluting the vigour of some of the provisions of 2013 Act. The social impact assessment and consent requirement were done away for some specified sectors including infrastructure projects. This has been made for developing a robust infrastructure like roads, airports and residential projects in India. The amended version enables companies stuck in land acquisition by making the process easier. Moreover, no cap on the area of multi-crop fertile agricultural land is mentioned; it enables private hospitals and private educational institutions for land acquisition. Being criticised as anti-farmer and pro-corporate, the government had to finally leave the ordinance route, and travel along a democratic path. Due to severe opposition, government is thinking of reviewing the amendments. 

The latest genre will affect the realty sector in India positively by making the land acquisition process easier for the development of industrial areas and major highway and expressways. Confederation of Real Estate Developers Association of India (CREDA) has assessed that in the amended form, the proposed Bill can help farmers without impacting or affecting the realty sector, if handled in the right perspective and manner. 

Understanding the need of making land available for the Housing For All programme by 2020, Modi government is pitching forward for the passage of the legislation. The debate goes on until the Bill would be settled by satisfying all the stakeholders. As a democratic government, pro-poor and pro-farmer policies have to be taken, keeping in view the larger spectrum of national development.