The Union government and the states have taken several initiatives to encourage the development in the real estate sector. The Smart City Project, which plans to build 100 smart cities, is an opportunity for real estate companies. Below are some of the other major government initiatives, from the website of the website of the India Brand Equity Foundation.
• The Cabinet Committee on Economic Affairs (CCEA) has approved measures to revive the construction sector, putting in place a mechanism to release funds stuck in arbitration awards to revive stalled projects.
• Brihanmumbai Municipal Corporation (BMC) has introduced a single-window clearance for construction which will cut the time taken for getting approvals for building projects and lead to correction in prices of residential property.
• The Securities and Exchange Board of India (Sebi) has proposed easier regulations for real estate investment trusts (REITs), such as raising the cap of investment of REITs’ assets in under-construction projects from 10 per cent to 20 per cent, in order to attract the interest of developers, and also plans to relax the rules for foreign fund managers to relocate to India.
• The Government of India has brought into force the Real Estate (Regulation and Development) Act, 2016, aimed at making the necessary operational rules and creating an institutional infrastructure for protecting the interests of consumers and promoting growth of the real estate sector in India.
• The Securities and Exchange Board of India (Sebi) has allowed Foreign Portfolio Investors (FPI) to invest in units of Real Estate Investment Trusts (REITs), infrastructure investment trusts (InvITs), category III alternative investment funds (AIFs), and also permitted them to acquire corporate bonds under default.
• The Rajya Sabha has passed the Real Estate (Regulation and Development) Bill, 2013, which aims to protect consumer interest, ensure efficiency in all property related transactions, improve accountability of real estate developers, increase transparency and attract more investments into the realty sector in India.
• The Securities and Exchange Board of India (Sebi) has issued the consultation paper for public issue of Real Estate Investment Trusts (REITs), which include provisions such as capping of allocation to qualified institutional buyers (QIBs) at 75 per cent.
• Prime Minister Narendra Modi approved the launch of Housing for All by 2022. Under the Sardar Patel Urban Housing Mission, 30 million houses will be built in India by 2022, mostly for the economically weaker sections and low-income groups, through public-private-partnership (PPP) and interest subsidy.
• The State Government of Kerala has decided to make the process of securing permits from local bodies for construction of houses smoother, as it plans to make the process online with the launch of software called 'Sanketham'. This will ensure a more standardised procedure, more transparency, and less corruption and bribery.
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