Financial Discipline Key to Real Estate Success, Says HRERA Official
New Delhi: Sanjeev Kumar Arora, a representative from the Gurugram bench of the Haryana Real Estate Regulatory Authority (HRERA), highlighted the critical role of financial discipline in ensuring the success of real estate projects at Assocham’s National Conference on Changing Dynamics of Real Estate for Viksit Bharat. Arora stated that no real estate project could fail if developers maintain financial discipline from the beginning.
Arora stated, ‘I am convinced that no project can fail if the promoter upholds financial discipline from the start and maintains a balanced debt-to-equity ratio. If financial discipline is adhered to from the project’s inception, failure is not an option.’
Call for Lower Interest Rates
Arora also advocated for reducing interest rates on home loans to boost demand in the real estate sector. He argued that lower lending rates would attract more investors and homebuyers, thereby increasing overall demand. “There is a need for rationalisation of interest rates, lending rates, because once the lending rates are reduced, certainly the investors or the homebuyers come forward. He added that builders are also pleased to deliver projects at the lowest possible costs.
Real Estate’s Economic Impact
Pradeep Aggarwal, Chairman of the National Council on Real Estate, Housing, and Urban Development at Assocham, highlighted the sector’s crucial role in making India a top economy. The real estate market, valued at Rs 24 lakh crore, contributes approximately 13.8% to the country’s GDP.
RERA’s Role in the Sector
Arora noted the significant impact of the Real Estate (Regulation and Development) Act (RERA) on the industry. Since its enactment, around 1,25,000 projects and 75,000 brokers have been registered under RERA across India. This regulatory framework aims to enhance transparency and accountability in the sector, protecting homebuyers’ interests and ensuring timely project completion.
Need for Government Support
Vineet Relia, Director of Urbanbriq Development Management Pvt Ltd, warned of a potential downcycle in the real estate sector if the government does not support affordability measures. He stressed the importance of government intervention to sustain growth and ensure housing remains affordable.
Conclusion
The emphasis on financial discipline and the call for lower interest rates underscore the strategies needed to ensure the success and growth of real estate projects in India. With its significant contribution to the economy, continued support and regulatory oversight are essential for fostering a stable and prosperous real estate market.
Read more: Alphacorp SKY1: New Luxury Residential Project in Gurugram
for more updates follow us on instagram
