The Real Estate Sector has not been performing adequately from a long time and the proposal of RBI Governor Raghuram Rajan is not favored by the Realtors in context of lowering property prices to encourage more people to buy.
It is due to increasing unsold stocks and delays in project completions the industry is facing slowdown and reducing more prices would surge chaos as according to Confederation of Real Estate Developers’ Associations of India (CREDAI) president, Getamber Anand price of 90 per cent of the residential supply in the country has already corrected. “If prices fall further, it will lead to non-performing assets (NPAs) and non-delivery of projects,” says Anand.
Pawan Kumar Dhoot, Managing Director, Dhoot Group also holds the same sentiment as according to him it is not a viable option to uplift the prevalent slump in the sector. He explains RBI has already offered deduction by 1.5 per cent cumulatively since January last year and earlier this month the policy rate was cut by 0.25 per cent to 6.5 per cent which is lowest level in more than five years.
Getamber Anand also clarifies the RBI statement by saying “His (RBI Governor) statement should not be taken out of context as he has recommended an adjustment and not necessarily a price cut. The adjustment could be through other ways like easy payment scheme to attract home buyers.”
Amongst all the dialect, the main aim of RBI Governor is to encourage investment in the real estate industry which according to him can be achieved if convenience is on investor’s side for which he adds, “There is an issue of certainly how they see the housing market and how they see prices. There has to be an adjustment so that more people want to go and buy.”
CREDAI(Confederation of Real Estate Developers Association of India) has decided of making skilled construction worker which is necessary for the upliftment of real estate sector and Dhoot Group is supporting its decision. With the commencement of Real Estate Regulatory Bill, there is a constant murmuring in the sector regarding its pros and cons. Though government’s effort to build a foundation for the betterment of investors is extraordinary hitherto there is less said or done for developers.
To come in support for the Bill, CREDAI aims to attempt skilling of one lakh construction employees each year. Pawan Kumar Dhoot, CMD, Dhoot Group is in alignment with CREDAI opinion as if the roots are managed properly. There is no doubt that a tree will be loaded with sweet fruits, thence if the workers are proficient in their skills then there is no stop for a strong and mighty construction.
The association is not only good at words but work as well, as it has already trained more than 26,000 employees across India. Based on KPMG report for that National Skill Development Corporation (NSDC), there is going to be proximate demand of additional 500 lakh skilled toilers in next ten years consequently CREDAI effort is well appreciated.