Since CREDAI’s inception in 1999, the real estate sector has seen major transformations over the years. Kumar Gera recounts, “In 1999, when we were relatively fresh off the back of the 1991 liberalization policy that intended to fast-track economic growth, the Indian real estate industry always had a noteworthy part to play in the journey of the country’s development through the multiple forward and back-ward linkages that development activities facilitated for other industries.
CREDAI, since 1999, has been the leading industry body for real estate development, and CREDAI has worked closely with industry stakeholders including government and homebuyers to ensure the development of a conducive eco-system over these 25 years. During this period, 2 very significant changes that have impacted the real estate industry were the repeal of the Urban Land Ceiling and Regulation Act 1976, and the introduction of Real Estate Regulation Act. These two legislative changes have had a profound effect on the industry. Scrapping of the ULCRA created an enabling environment for the real estate industry to scale up production in urban India while introduction of RERA has brought in a very high level of accountability from developers.
Other transformations during this period, have been in the areas of finance, environment, and sustainability. One must not forget the significant innovations in technology , improvements in construction methodologies, new regulations, sustainability norms, homebuyer cen- tricity, and the changing urban landscape. Considering all these changes, it would be fair to say that the real estate industry, over the last 25 years, has undergone a sea change.”
Boman Irani was of the view that while the industry has seen its fair share of ups and downs in 25 years - the last 10 years have been more transformational, especially in the residential segment. “From a policy perspective, we had the biggest disruptor in RERA which revolution- ized how stakeholders operated overnight- with fly by night developers getting streamlined and only credible developers leading the way.
Homebuyers’ perspective wise became more cogni- zant of the need and advantages of owning a home as opposed to renting in the post covid era. People began to realize the potential of real estate as a source of wealth creation, which historically speaking, real estate has been the biggest source of value add from a monetary perspective. Additionally, we had the biggest Housing initiative in the world in ‘Housing for All’ announced by the honourable PM which has provided crores of homes to the beneficiaries. Sustainability and green buildings have taken a front seat, making the last 8-10 years ex- tremely exciting for real estate, and building a strong foundation for the way ahead.”
INITIATIVES FOR THE REAL ESTATE FRATERNITY
Kumar Gera shared, “CREDAI's 25-year journey has been marked by numerous initiatives and advocacies that have shaped Indian real estate’s direction over the past decades and has culminated into what the industry stands for today. Representing leading stakeholders, we have largely been one of the most reliable and prominent voices in policymaking and industry developments. We work closely with Ministry of Housing and Urban Affairs, Ministry of Environment, Ministry of Finance, Niti Ayog, among many other relevant ministries and bodies that have a direct or indirect implication on Indian Real Estate as also in the framing of policies at the central, state & ULB levels.
In terms of our member policies and code of conduct, 13,000+ developer members proactively follow ethical practices which has raised the level of transparency in the practices followed by developers. Initiatives like Consumer Grievance Redressal Forum and Clean City Movement (CCCM) are focussed on resolving customer issues amicably & speedily while the CCCM provides environment friendly and efficient solid waste management system.”
Boman Irani added, “Our commitment to transpar- ency, ethical practices, and women empowerment has raised the bar for industry standards. We have also taken a lead on Green Buildings basis our association with IGBC. CREDAI has also several knowledge sessions and conferences, like the New India Summit, which is primarily focused on Tier II, III development, or YouthCon, which is organized by CREDAI’s Youth Wing to provide a strong platform for Next Gen developers.
CREDAI also possesses a research wing that releases timely reports on various industry segments to provide exclusive insights especially on the housing and office space markets. Additionally, we have also set up a Women’s Wing to encourage more women participation in the real estate sector. CREDAI takes a lot of pride in covering all stakeholder bases through our programs and communications that binds us all together and creates a definitive roadmap for the future.
CREDAI has also been spearheading skill develop- ment and training programs across the country and has also been associated with NSDC and NIPUN for this. Till date, CREDAI has upskilled over 3 Lakh construction workers and continues to do so rigorously.
As CREDAI celebrates silver jubilee this year, we are committed to social cause more than ever. We will be planting 25 Lakh plants, building more than 1 million Green certified homes and through our members con- struct 25 million Sq. Ft. of green commercial spaces.
With an annual housing demand of 1 crore and an additional demand of 7 crore homes by 2030, the sector is poised to drive substantial economic growth. Rapid urbanization, government initiatives like PMAY and Smart City Mission, and large-scale infrastructure projects have fuelled demand and employment, making it a crucial driver of India's growth. As India strives to become a developed nation by 2047, the real estate sector will continue to play a pivotal role in achieving this vision - BOMAN IRANI
Like nations such as China, Korea, and Japan, whose economic prosperity paralleled significant surges in real estate growth, now India is following suit. The industry holds promise of becoming a cornerstone in India's economy as proven by its substantial robust quarterly GDP figures.Considering the fast track that the Indian economy is on and the massive upsurge in infrastructure development, there is no reason why the real estate industry will not continue its significant contribution to the nation’s GDP - KUMAR GERA
CREDAI CALLS FOR POLICY CHANGES
The definition of Affordable Housing, which was capped at Rs 45 lacs, was given in 2017 and is yet to change since. Due to inflation alone, there has been significant rise in real estate prices in the past 7 years. As per data from the National Housing Bank (NHB), there has been an increase of 24% in housing rates since June 2018 in India – which makes the current cap of 45 lacs extremely unfeasible for developers to adhere to. There has also been a gradual reduction in availability of units under Rs 50 lacs on account of inflationary pressure. Hence, CREDAI recommends the definition of affordable housing to be revised as “a unit with 90 square meter RERA Carpet Area in Metros Cities and 120 square meter RERA Carpet Area in Non-metros without a cap on cost of the unit.
There is an urgent need to implement ‘Transitional Policies’ which provide stakeholders, and especially developers, reasonable time to adjust to the new nor- mal. There should be a thorough process, including consultations within different stakeholders, to ensure everyone’s on the same page and the transition to a new policy is more streamlined as opposed to everyone being rushed into it. We're committed to working closely with the government to make this vision a reality.
SUBJECT MATTERS THAT CREDAI WILL CONTINUE TO PURSUE
Sustainability – We are extremely cognizant of our activities and want to set a legacy characterized by sustainability. We continue to work with relevant bodies and authorities to set an extensive plan in motion which sees the industry becoming carbon neutral by 2050.
Strengthening Transparency - CREDAI and its strong pool of developers are extremely committed to provide a transparent, accountable eco-system that provides for all its stakeholders while boosting economic growth. Effective Policymaking - CREDAI will continue to work closely with relevant ministries and represent the best interests of various stakeholders.
Skilled Construction Workforce - CREDAI supports the skilled construction workforce through training programs, scholarships, and career advancement opportunities, ensuring industry professionals have the skills needed for success in the evolving real estate landscape.
Adoption of New Technologies - Through initiatives like tech expos, workshops, and partnerships with tech firms, CREDAI fosters the adoption of cutting-edge solutions, enhancing efficiency, sustainability, and competitiveness in the industry.
