A vision for smart, resilient, inclusive cities: Naredco's G Hari Babu

'The introduction of Real Estate (Regulation and Development) Act (Rera) in 2016 marked a major shift, bringing transparency and accountability with mandatory project registration, buyer protection'

In a video interview with Aneeka Chatterjee, G Hari Babu, president of the National Real Estate Development Council (Naredco), the sector’s regulatory body, identifies emerging investment hotspots, and the trends and technologies shaping the industry. Edited excerpts:

How has the Indian real estate regulatory framework evolved?
 

It has evolved significantly. Initially, the sector was largely unregulated, leading to issues like project delays, loss of customer trust, and lack of consumer protection. The introduction of the Real Estate (Regulation and Development) Act (Rera) in 2016 marked a major shift, bringing transparency and accountability with mandatory project registration and buyer protection. Then the goods and services tax (GST) in 2017 standardised taxation, replacing multiple taxes. Recent initiatives like the Model Tenancy Act and digitisation of land records further improved transparency and efficiency, making the sector more robust and investor-friendly.
 

What more can be done to ensure greater transparency and accountability in real estate transactions?
 

To ensure this, developers must adhere to strict financial regulations. This includes opening specific accounts for each project, with 70 per cent of the funds allocated exclusively to that project. Chartered accountants and chartered engineers are required to certify that funds are used appropriately. This process involves collecting and documenting detailed evaluations, including photographs, to ensure that costs and fund allocations are thoroughly verified. Regular assessments, typically conducted quarterly, help maintain accountability and prevent the diversion of funds.
 

What are the emerging hotspots and investment destinations for developers?
 

Most states are excelling as real estate hubs, with 18 cities, including the top seven and 11 other smaller ones, performing well. However, Vizag lags due to low employment opportunities. In Ayodhya, driven by the Ram temple, commercial activity is booming, with new hotels and second homes being established.
 

Over the last five years, 345,000 families have migrated from Andhra Pradesh, often for employment, leaving parents behind. This migration impacts local real estate demand. In contrast, cities like Hyderabad and Mumbai, which created 75,000 new jobs last year, attract families and boost their real estate markets. Every city is poised to develop luxury realty properties as the Indian economy grows, increasing overall wealth.

How will emerging trends impact real estate?
 

Aluminium formwork is one of the latest technologies gaining traction, especially in India’s rapidly rising skylines. High-rise buildings, reaching up to 200 metres, have become common. Unlike in 2008-2009, when study tours to places like Singapore were necessary to see such structures, Indian cities now showcase them extensively. 
 

Aluminium formwork enables rapid construction, with one slab completed every 7-10 days, allowing a 45-50 floor building to be finished in about 50 weeks. While prefabricated houses are emerging globally, their high costs, such as in Singapore (Rs 10,000 per square foot), make them less viable in India where construction costs are significantly lower (around Rs 4,000 per square foot). Hence, in the next 10 years, aluminium formwork will be the best technology for Indian real estate.
 

How does Naredco plan to strategise its role in India’s real estate boom?
 

Our vision for the sector involves forging a sustainable path that embraces transformative trends, shapes future cities, and ensures regulatory and policy alignment for enduring growth. We aim to integrate smart technologies, promote sustainable practices, and develop efficient urban mobility solutions to create intelligent ecosystems. 
 

By prioritising resilient infrastructure, affordable housing, and inclusive communities, we envision smart, resilient, and inclusive urban environments that foster economic growth and social well-being. This comprehensive approach aligns with our commitment to a vibrant, inclusive, and environmentally responsible real estate landscape in India.