Real estate showing signs of revival; Need for correction in land prices: Naidu

The real estate sector is showing signs of revival after a period of slowdown, Vice President M Venkaiah Naidu today said but expressed concern over high prices of land parcels especially in smaller cities.

Addressing realtors' body CREDAI annual conclave, he asked the association to adopt self code of conduct for members and keep distance from defaulting and fly-by-night operators.

"After a period of slowdown in the market, the realty sector market is once again showing signs of revival, which is good for the economy," he said.

The construction and real estate sector plays a vital role as it is the second largest job provider after agriculture, he added.

Naidu hoped that the CREDAI is well geared to implement the best practices as required in the new real estate law RERA (Real Estate Regulatory Authority).

Referring to the court cases filed by home buyers against builders, Naidu said there is a need for regulator but regulations should not become strangulations.

"If there is no regulation, then you have more and more Vijay Mallya's, you have Nirav Modi's.....," the vice president said, adding that this realty law was passed during his stint as Minister of Urban Development.

The law, which came into effect from May last year, seeks to bring much-needed transparency in the property sector.

On high land price, Naidu said he wondered prices of land in Vijaywada and other places, are equivalent to New York and Washington.

The cost of housing units is going up because of land, he said.

Stating that land parcels are largely held by middle men, Naidu said, "there is a need for price correction" and "reality has to come in the real estate sector".

He also expressed concern over massive housing shortage of 19 million units currently, estimated to double at 38 million units by 2030.

Highlighting steps taken by the government to boost affordable housing, the vice president said this segment will drive the real estate sector in coming months.

Naidu said the private players have a great role to play in providing homes to people.

The delay in clearance for housing projects should be addressed by local bodies, he said, adding that there should not be obstruction in development in the name of environment.

Earlier, CREDAI President Jaxay Shah highlighted that initiatives taken by the association towards skill development of construction workers and waste management as well as environment protection. He also informed that member developers have taken up affordable housing projects in a big way.