The Indian real
estate sector is not getting adequate support from banks / Housnig finance
companies and policy makers despite its contribution to economic growth,
according to Mr. Lalit Kumar Jain, Chairman, Confederation of Real Estate
Developers Association of India (CREDAI).
Above Rs. 50,000
crore of bank loans are on the verge of being treated as bad debt as banks
refuse to restructure these loans even though adequate collateral is available
with developers, he added.
Addressing the
inaugural of Southcon 2013, a 2 day
seminar on realty organised by CREDAI at Chennai, he said the world over the
housing market is an indicator of growth. But, in India it does not get
adequate incentives. Cost of approvals account for over 40% of sales cost, he
said.
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| Mr. Lalit Kumar Jain, Chairman |
Mr. N. Ram, Chairman,
Kasturi & Sons, the publisher of The Hindu Group of publications, said ,
''The real estate sector is an important part of national economic activity but
is “under-estimated and sometimes demonised” due to misconceptions that it
makes super profits. The media too tends to rush into judgement.
It is “fair enough”
if the real estate sector complains when the news coverage is not fair and
reliable. But, the construction industry too should not be “over sensitive” as
long as the media gets the facts right. He commended CREDAI for spelling out a
code of conduct. If this is enforced to
address customer needs a “tremendous job would have been done”, he said.
Transparency in
project approvals & according of industry status to the real estate sector
are crucial for sustained economic growth and job generation, according to Mr.
T. Chitty Babu, Chairman, Southcon 2013.
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