Menda sees more significant developer activity in 2023
The size of the urban sector will double in the next 25 years, and there is a lot of catching up to do in building infrastructure in the country, according to Kuldip Narayan, Joint Secretary (HFA), Ministry of Housing and Urban Affairs.
Requirements for facilities, residential spaces, commercial spaces and urban infrastructure would double, he said at the 16th FICCI Real Estate Summit held on 21 Mar 2023.
“We have a lot of catching up to do in infrastructure,” he added, pointing out that with increasing urbanisation to 30% from 12%, the next 20 years could see more development than witnessed in the last 50 years.
Narayan also alluded to changes in construction technologies, highlighting the government’s “consistent stand on reducing carbon emissions and improving energy efficiency” and encouraging the industry to “adopt better and resource-efficient construction technology”.
Narayan spoke about Credit Linked Subsidy Scheme (CLSS) and said it became so popular that out of a total portfolio of about 30 lakh crore, almost five lakh crore is funded or some subsidies given in some part under CLSS.
Comparing to all, interest subvention schemes earlier to CLSS, the number of beneficiaries works out to be almost 2,000 times, he said
“Almost Rs.55,000 crore interest subsidy was given to loan accounts that we have just finished,” he informed the summit.
The demand for Grade A premium office assets is likely to increase to 1.2 billion sq. ft. by 2030 in India, according to Raj Menda, Joint Chairman, FICCI Real Estate Committee and Corporate Chairman, RMZ Corp.
The extraordinary demand of flex space from medium and large enterprises further propelled the sector growth, he added.
Menda underlined that 2023 would see more significant developer activity to improve building efficiency, design adequacy and sustainability criteria.
After consecutive years of slowdown in the sector, last year witnessed unprecedented growth by reaching a new historical height in the commercial office segment, he said.
Besides, Vipul Roongta, Co-Chairman, FICCI Real Estate Committee and Managing Director and CEO, HDFC Capital Advisors, spoke on affordable housing.
It is where 99% of the demand is, where people are making money, inventory is getting sold, and enough intervention is happening on the supply side, he believes.
Elaborated Arun Chawla, Director General, FICCI, “With an increase in urbanisation and household incomes, the demand for residential real estate has seen an unprecedented surge.”
As a result, India is now among the top 10 price-appreciating housing markets internationally.
“This year, when India celebrates the Amrit Kaal, this will surely be recognised as a major hallmark in the country’s list of achievements,” he said. fiinews.com
