India strives to balance its substantial housing shortfall amid rapid urbanization with sustainable development. While real estate exhibits vigorous promise, experts emphasize tailored planning across affordable green projects, infrastructure upgrades, and ownership boosts.
The Need for Holistic Planning
With extensive construction activity, the realty sector significantly contributes to emissions through materials and operations. Thus, green building certification warrants prioritization to mainstream sustainability. Moreover, supporting infrastructure – from water to transport facilities – deserves attention given its multiplied socioeconomic perks.
Gurmit Singh Arora, National President, Indian Plumbing Association, says, “Despite bullish realty prospects, governments also need to play a pivotal role by integrating affordability and long-term sustainability.”
With estimates stating India requires 25 million additional homes by 2030, ‘proactive steps’ become vital. These span tweaked affordable housing definitions for wider eligibility, improved developer incentives via financing/ tax breaks/ R&D aid to make projects sustainable. Concurrently, reining in repo rates and boosting public infrastructure are crucial.
Most imperatively, buildings cause 40% of emissions globally – with materials and operations each contributing heavily. Hence, “mandatory green certification is integral for carbon-neutral Indian realty,” Arora says.
Also Read: Short Term FD vs Long Term FD: 5 tips for selecting the right fixed deposit tenure
Driving Growth Through Targeted Impetus
Policy efforts like industry status for realty, R&D subsidies and tax incentives can ignite responsible growth. By spurring construction, such solutions generate employment while attracting ancillary sectors. Concurrently, rationalizing clearances, funds access and GST will assist stakeholders.
Echoing the need for governmental boosts, LC Mittal, Director, Motia Group, says, “Real estate plays a critical economic role – contributing ~8% of GDP alongside massive employment generation spanning 200 ancillary industries.”
Thus, granting the sector its long-awaited ‘industry status’, coupled with process streamlining efforts like single window clearance, tax incentives and GST rationalization would stimulate demand. This would cascade positive ripples across housing and related sectors.
Navigating Risks Through Balanced Expansion
Balanced policies weighing demand trends and supply-side risks are key. Enhancing affordability via home loan interest cuts, reduced capital gains tax should couple with bolstering supply through land banks, alternate funding channels for developers, etc. This allows ownership expansion without overheating the industry.
For balanced, risk-mitigated growth, RPS Group Director Aman Gupta advocates assessing ‘both supply and demand drivers.’ “On the demand side, enhancing affordability via higher home loans tax deductions, lower capital gains tax should couple with strengthening supply through alternative realty funds, free land banks etc. Concurrently, incentives that spur eco-friendly solutions will mainstream sustainability,” he says.
Curbing the Shortfall Through Accessible Yet Sustainable Development
Widening affordable housing eligibility alongside developer incentives to optimize costs will aid covering the over 25 million predicted urban housing units deficit by 2030. Sustainability measures like green technology subsidies amidst increased activity will curb emissions.
Upgrading Support Infrastructure for Sustainable Inclusive Growth
The urban housing lag necessitates a holistic approach encompassing public infrastructure – water, power, transport facilities. This upgrades livability, sustainability while spurring construction jobs. Developing such facilities alongside housing instead of retrofitting raises efficiency.
To conclude, a multi-focal stance encompassing green affordable projects, infrastructure building and ownership incentives is imperative for sustainable Indian realty trajectory. The 2024 Budget should champion such judicious interventions to reconcile housing gaps with climate-conscious growth.