The real estate developers from India were invited on Tuesday by the Prime Minister of Israel, Benjamin Netanyahu. The purpose of this invitation was to boost the profit and productivity of both countries through a partnership of Indian real estate companies with the Israeli companies.
Netanyahu was addressing the CREDAI which is the real estate developer’s apex body, through video messaging, that where conferencing here. He addressed the fact that if Enterprises from India agree to partner with the Israeli companies that are eager to be a part of this partnership, then there will be a massive surge in the productivity and profitability of both sides which will lead to a brighter future together. India and Israel are already partners and have been collaborating in many different areas, including agriculture, security, IT, and Cyber. So the proposal of a partnership in real estate and construction field is something worth looking forward to.
If discussed on the grounds of growth opportunities, the office stocks of India can be expected to reach a billion square feet till the year of 2030, as compared to the current level which is a total of 600 million square feet; according to the joint report by CREDAI and CBRE that was released here. India has chances of having 9 billion economic opportunities by the end of 2030. The per capita income for the entire population which is about 1.5 billion, can touch a number -$5625 with the required annual spending on infrastructure being 7-8 % of the gross development product (GDP).
More to know…
According to the investment flows which has increased exponentially in the past few years, it is almost evident that India is and will continue to remain a highly prioritized market contributing to the long term potential of growth which it possesses. CREDAI president Mr Satish Magar has mentioned the fact that if the new Vision and Mission of the idea of ‘new India’ which the government has involving a budget of around 5 trillion dollars is to come true, then the significant industries which contribute to the subcontinent economy (for example real estate) needs to welcome various trans-formative and innovative measures which can ultimately give a shape to all of these goals.
The real estate industry which has been a matter of spotlight throughout past five years due to various regulatory measures and is now looking for government assistance and attention for resolving the issues related to stalled and stagnant projects. Multiple reforms in the policy and rules were implemented through the enactment of RERA act 2016, amendment of Benami Transaction Act. Government’s decision of demonetization of currency notes that have high value has contributed in assisting and formalizing the real estate sector.
However, the developers in the real estate sector have been experiencing liquidity pressure cost due to sluggish momentum of sales in the field of residential real estate. The liquidity crisis is something that has been there for quite a while. However, the NBFC and IL&FS crisis that took place in the last six months of 2018 has further contributed to the ongoing stress which in turn resulted in two significant challenges like delayed and stalled projects throughout the entire country.
The recent changes that were brought about have led to a situation where developers are interacting more with the customers. HDFC MD Renu Sud Karnad has also mentioned that financing and solutions for the delayed projects are still to be found. She also believes in the fact that though the real estate sector is going through some tough times, it will pass soon and that it is high time for or the reality developers to review, recheck and rebuild mammoth compliance for their businesses.