While the regulations like Real Estate Regulatory Authority (RERA) and Insolvency and Bankruptcy Code (IBC) have been fixing accountability of developers which has improved consumers' and investors' sentiments towards the sector, there is an urgent need to stress on both demand and supply based constraints, Member of Parliament (MP), Jagdambika Pal said at an ASSOCHAM event held in New Delhi today.
There is a need to improve credit flow to the real estate sector, said Pal who is also the chairman, Parliamentary Standing Committee on Urban Development in his inaugural address at ASSOCHAM National Conference on Real Estate and Housing Finance. He also called for faster and better implementation of RERA. The Member of Parliament suggested creating a developed market for long-term finance for the housing finance sector as currently the sector faces asset-liability mismatch.
Pal further said that since India has a low mortgage to GDP ratio, compared to other developing countries, the low penetration points to a very large opportunity for growth. He said that a major milestone and policy initiated under Housing for All by 2022, which is aimed at providing housing to over 20 million families by 2022, shows the clear-cut commitment of the government.
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