Government keen on infrastructure investment for economic revival: MoHUA

The real-estate sector is one of the most important sectors of the economy and the government is keen on infrastructure investment as it helps in the revival of the economy, said Durga Shanker Mishra, Secretary, Ministry of Housing and Urban Affairs (MoHUA). He was addressing a special session of the FICCI 14th Annual FICCI Real-Estate Summit.

“The focus and reforms in the real-estate sector in the past six years have been unparalleled; be it ease of doing business or the Real Estate (Regulation and Development) Act (RERA),” he added. Mishra also highlighted that the sector will have a crucial role to play in the revival of the economy after the pandemic, whether it is in terms of employment generation, contribution to the GDP or the direct multisectoral link. 

Mishra further said the government's focus should be on kickstarting and creating demand in the housing sector. “We should find innovative solutions considering the altering demands in the real-estate sector.” He also elaborated upon new technologies that have been inducted. “For the first time, with the Global Housing Technology challenge, 54 types of new technologies were introduced into the sector,” 

he added. “Today, in more than half the cities across India, there is an IT-based solution for construction permits. Also, we have made a new curriculum to make people technology-sensitive.”

Further, the plan for an affordable rental housing complex was introduced for the first time. “FICCI will have to play an important role in affordable rental housing complex planning, especially social rental housing,” added the MoHUA secretary.

Raj Menda, Joint Chair, FICCI Real-Estate Committee and Corporate Chairman, RMZ Corp, said, “As the economy moves towards normalcy, the sentiments of the real-estate sector should also improve; stakeholder sentiment towards the future has shown improvement compared to the previous quarter.” Menda also urged the government for its support in allowing GST to be set off from rents.

Irfan Razack, Co-Chair, FICCI Real-Estate Committee and Chairman & Managing Director, Prestige Group, said, “There is a huge demand for a range of housing; unfortunately, housing is taxed almost at three times.” He also added that the government's focus should be on kickstarting and creating demand in the housing sector.

Two reports – FICCI-CBRE Report 'Post-Covid-19: The Future of Office and Industrial and Logistics Real Estate in India’ and FICCI-Colliers Report 'Future India: Captivating Strategic and Private Equity Investments’ – were also released during the summit.