Policy Reforms Needed in Realty Sector

The National Real Estate Development Council (NAREDCO) has called on the new government to introduce significant policy reforms in the real estate sector. According to NAREDCO, these reforms are crucial for addressing the persistent challenges faced by the industry and for fostering a sustainable and vibrant realty market.

One of the primary areas highlighted by NAREDCO is the need for more streamlined and transparent approval processes. Currently, the sector is bogged down by bureaucratic red tape, which significantly delays project approvals and increases costs. By simplifying these procedures, the government can boost investor confidence and expedite project completion times.

Another critical area for reform is the tax regime. NAREDCO has pointed out that the current tax structure is cumbersome and often acts as a deterrent to both domestic and foreign investors. Simplifying tax laws and providing clearer guidelines can help in attracting more investment into the sector, thereby stimulating growth.

NAREDCO also emphasised the importance of affordable housing. Despite various government initiatives, the supply of affordable housing still falls short of demand. Reforms aimed at incentivising developers to focus on affordable housing projects could help bridge this gap. Additionally, more robust financing options for homebuyers and developers could further support this segment.

The regulatory framework governing the real estate sector also needs an overhaul. NAREDCO has suggested that the introduction of more stringent regulations and enforcement mechanisms could help curb malpractices and enhance transparency. This would not only protect the interests of homebuyers but also ensure that developers adhere to high standards of construction and ethical business practices.

Finally, NAREDCO has called for better infrastructure development to support real estate growth. Improved connectivity, utilities, and amenities are essential for the holistic development of residential and commercial projects. This, in turn, can lead to more balanced urban growth and improved living standards.

In summary, comprehensive policy reforms in approval processes, taxation, affordable housing, regulatory frameworks, and infrastructure development are essential for revitalising the real estate sector. The new government has a crucial role in implementing these changes to ensure the sector's sustainable growth and development.