The real estate sector in India is reasonably disorganized with all kinds of players, from MNCs to fly by night operators. This factor has led to a huge trust deficit at the investors’ end. Add to it the slow-down in the Real estate in India, which has led to non-availability of funds and delay in almost all projects to the tune of 2 to 3 years, adding to the woes of investors as well as the developers.
One major factor for this disruptive real estate sector in India is non-availability of legal infrastructure and statutory bodies especially designed to address the sector. The ambiguous nature and a non-supportive administrative staff add to the pain points of the real estate sector in India.
Corruption, investment of black money, political interference and vested interests further increase this complexity and add to the unfriendliness factor of the real estate sector in India. Just to take an example, the Gurgaon master plan was revised three time in ten years, we had the 2017, 2021 and the 2031 plans. Under normal circumstances the master plan is the most important document which is published after due diligence and detailed planning and are not amended or tinkered with so frequently.
However, these amendments are done to favour a few or else harm a few by changing the classification of the sectors etc. There are allegations that details of these amendments are already leaked to a few ‘to be favored’ parties providing them lead time for exploiting the new provisions. Such practices only add fuel to the fire and further alienates the middle class investor as well as the sincere real estate developer community.
Till the time these pain points are addressed, a strong statutory mechanism is brought into place and the sector cleaned up of black money, things are not going to change much in the real estate sector in India.
The real estate stake holders in India, especially the developer community themselves need to realize that there is a requirement to throw the bad fish out, give the industry a face lift, a more professional changeover and a no nonsense attitude. Though, the developers have formed many cooperative bodies for introspection, as well as to interact with the government, there has been no sincere effort to address the real pain points. One sincerely hopes and prays that this slow-down would be a blessing in disguise for the Real estate property in India to pull itself out of the muddle they are in.