“The Central Government is continuously making efforts for the all-round development of the real estate sector in the country. And, appropriate changes are being made in the existing definition of affordable houses, policy reforms related to landlord-tenancy laws, and progress in reviving stalled housing projects are among the steps taken by the government”, said Shri Dinesh Kapila, Economic Adviser (Housing-1, Coordination & NER, Ministry of Housing and Urban Affairs (MOHUA), Government. of India at program by Assocham.
Shri Kapila emphasised the government's commitment to achieving a balance between better growth prospects and the actual growth of the real estate sector. He stated, "The difference between these two aspects needs to be minimised, and the central government is taking steps at every level to ensure this. In response to the industry's call for improving the definition of affordable housing, a proposal has been forwarded to the Union Finance Ministry. We are particularly concerned about high land prices in metropolitan cities like Delhi and Mumbai, which make the current price range for affordable houses of less than Rs 45 lakh inadequate. We have requested the Finance Ministry to consider raising this threshold to at least Rs 75 lakh."
Regarding the Swamih Investment Fund, Shri Dinesh Kapila mentioned, "So far, 334 deals worth Rs 36,000 crore have been approved through the government-sponsored Swamih Investment Fund. This initiative will enable approximately two lakh homebuyers to realise their 'dream homes.' The SWAMIH (Special Window for Affordable and Middle-Income Housing) Fund was launched by the Central Government to address funding shortages and other challenges causing delays in housing projects. I also encourage the private sector to actively participate in this fund and invest in stalled housing projects. Additionally, as far as the need for easy loans to purchase land for residential projects is concerned, the Reserve Bank has been made aware of it and it is expected that it will take steps in this direction.”
The Economic Advisor stressed the need to bridge the gap between the number of vacant flats and the demand for housing. He said, "One crore flats are currently vacant all across the country, while a technical group's report suggests a requirement of 1.87 crore houses. This disparity needs to be addressed.” He noted that housing is a state subject, and the Central Government has shared a model rent law with state governments, balancing the interests of landlords and tenants to foster confidence among landlords and motivate them to invest in more rental housing.
Shri Kapila praised the impact of the Real Estate Regulatory Authority (RERA) Act, stating, "The real estate sector has gained momentum since the implementation of the RERA Act in 2016. Eighty-six percent of housing projects have been completed on time, benefiting homebuyers. We are actively working to complete pending projects, with 90 percent of these projects initiated before the enactment of the RERA law. We are committed to resolving these issues, as demonstrated in our collaboration with state governments and the pending projects in Noida and Greater Noida, Uttar Pradesh."
Shri Kapila also highlighted the tremendous potential of the real estate sector. "By 2030, we need to construct 70 to 90 crore square meters of real estate annually. This reflects the growing urbanisation trend, with an estimated increase in the urban population from 37.7 crores to 60 crores by 2030. The real estate sector has become the second-largest employment provider, and it is expected to grow from $200 billion to $1 trillion by the end of the next decade, with its share in the country's GDP increasing from 7 percent to 13 percent by 2026."
