Shah also emphasized that the real estate law, RERA, has made the functioning of developers smooth, besides protecting the interests of homebuyers.He also noted that the reduction in GST rates on various construction materials would help reduce costs.
“The cost reduction would help builders provide more facilities to customers,” he said.
Talking about the need for sustainable development, Shah asked real estate developers to work towards achieving net zero in the sector.
Standards for green building, energy efficient design, water recycling, provision of rainwater harvesting systems and scientific waste management should be the “new normal” in the housing sector, he told developers. Developers should focus on these aspects while designing their projects, apart from the basic structure of the buildings, he said, adding that costs should not increase much by adding green features.
The minister asked all builders to consider green areas and plantations while designing housing projects, saying this would not affect their profitability.
“In the coming days, we need to make the land market transparent,” Shah said, adding that cities need to move away from land banking and speculative ownership.
In this context, Shah further said that the industry should practice self-regulation so that the government does not have to intervene.
The minister said there is a need to further enhance the credibility of this sector.
Speaking about the RERA Act, he said there were many concerns from the industry when the law was passed in 2016.
“Looking back, no one can deny that RERA has played an important role in the smooth functioning of developers,” he said.
The Real Estate (Regulation and Development) Act (RERA) was passed in 2016 and the law came into full effect in May 2017.
The RERA has brought about structural reforms in the real estate sector, he said, adding that this law has helped in protecting the interests of home buyers, transparency in real estate transactions and improving the quality of construction.
Currently, 35 states and Union Territories are implementing this law. 1.55 lakh projects have been registered.
He said the customers will not hesitate to buy properties if the projects are registered under RERA.
On GST, the minister said that maximum benefit has been given to the real estate sector.
He highlighted that VAT on cement was recently reduced from 28 percent to 18 percent. VAT on many other building materials has been reduced.
“Overall, there is a possibility of a cost reduction of 5 to 7 percent due to the latest GST reforms,” he said, adding that this would enable builders to provide more facilities to customers.
Shah said rapid urbanization will provide immense opportunities to the real estate sector in the coming years.
The minister said the government is moving forward with a vision of urban development, and responsible developers are part of this vision.
Speaking at the event, Environment, Forest and Climate Minister Bhupender Yadav said the government will grant environmental clearance within 90 to 110 days, compared to 650 days under the previous government.
Yadav also spoke about the need to develop green real estate projects and achieve the net-zero emission target.
The minister asked builders to focus on e-waste recycling, besides solid waste management.
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