There has been a food revolution,a telecom revolution and an aviation revolution in the country since India’s independence, but no move to revolutionise housing and infrastructure in the country. Niranjan Hiranandani, president of the India Chamber of Commerce, says that real estate is more than an industry and advocates that it should be accorded the status of an infrastructure project provider. The need of the hour is devising and implementing a master plan to raise Floor Space Index ( FSI ) limit to required quota needed to house various strata of society and income group in the country. A large percentage of India’s population has roti and kapda, but not a decent makan to live in.
Niranjan Hiranandani, President of the India Chamber of Commerce , and co-founder and managing director of Hiranandani Group and founder of Hirco, strongly opines that finance is not a constraint for the real estate market but change in government policies, providing the required Floor Space Index (FSI) for a respective city and well-connected infrastructure development, will revoluntionise housing in the country. According to Niranjan Hiranandani, real estate is more than an industry and should be accorded the status of an infrastructure project provider. He spoke to Chauthi Duniya at length on housing issues and the need to accord an infrastructure provider status to the real estate sector in the country.
Chauthi Duniya : In your opinion, where is the real estate market heading? What are the factors primarily responsible for the fall in the market?
NIRANJAN: The real estate market’s growth can be decided by the government only. It’s only the government which will decide the future course of the realty estate development in the country. There has been a food revolution,a telecom revolution and an aviation revolution in the country since India’s independence, but no move to revolutionise housing and infrastructure in the country.
There is no food scarcity in the country after the Green Revolution. In fact, in the post-Green Revolution era, food import is absolutely miniscule. The same with telecom and aviation revolution, where the open sky policy has provide access to these services at affordable prices to the masses.
We need transparent policy plans on private infrastructure development and housing, public infrastructure network which includes road, rail and water transport, water and electricity and no ceiling on Floor Space Index ( FSI ).
Chauthi Duniya : How quickly will the realty market revive?
NIRANJAN : Overall the market will revive if government policies open the gates for real estate development without caps on FSI, relax Development Control rules and a well-oiled exterior infrastructure network.
Changed government policies will change the face of housing and infrastructure development in the country. The need of the hour is devising and implementing a master plan to raise FSI limit to required quota needed to house various strata of society and income group in the country. A large percentage of India’s population has roti and kapda, but not a decent makan to live in.
Chauthi Duniya : Currently, it’s not a home buyers market. Would you agree?
NIRANJAN: In certain parts of the country because of state government policies, the home buyers market is strong. In some other parts of India, the home buyers market is hit because the respective government policies are not conducive for the private housing providers.
Chauthi Duniya : Can you specify the role of the government and banks can play to promote overall real estate development in India?
Niranjan : The infrastructure development and private housing providers have finance, since banks fund viable projects, there is funding from IPOs and investments from FDI, venture capitalists and domestic market players.
The providers are hit because of lack of political vision and leadership and clearance of approval of plans at snail pace.
Holistic development of infrastructure, both private and public, will boast housing development in the country. Shopping malls, luxury amenities, clubs, multiplexes provided by private players and elaborate civic infrastructure (well-connected roads and transport and robust public amenities) built by the government, will create affordable houses for various economic groups.
Chauthi Duniya : Today, the realty market is the ultimate investment destination in the country, yet it does enjoy the status of an industry in the country. Would you like to comment?
NIRANJAN: It is not only an industry but even bigger. It should enjoy the status of infrastructure project provider. We need to replicate across the country, the liberal FSI rules applied in Hyderabad, Noida, Navi Mumbai, and a few other cities in India. You have wide roads and adequate parking space created in these cities.
Unfortunately, 32 per cent of affordable houses are taxed and interest rates have been raised and thus a buyer who was paying an EMI of Rs 35,000 is paying Rs 49,000 with the hike in home loan interest rates.
If the government decides on launching the housing revolution, we can provide affordable housing in the country.
We have no dearth of excellent architects, adequate raw material stocks and semi-skilled and unskilled labour in the country. Infrastructure and real estate development creates huge employment for the semi-literate and ill-illiterate migrants to cities. However, unfortunately the labour supply has been badly hit in cities because the government has implemented the social security scheme under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA ) in rural parts of India.
Chauthi Duniya : Which is the future market? Is it residential or commercial spaces?
NIRANJAN: I would say everything. Provided government policies on real estate development are friendly, the real estate sector will not get a boost and hence housing problems will continue to plague the masses across the country.
Hirandani Group’s Milestones
The Group is known for its projects of Hiranandani Gardens, Powai Hiranandani Meadows Hiranandani Estate, Thane, Hiranandani Business Park Powai & Thane, Hiranandani Upscale Chennai and Bangalore, Hiranandani Upscale SEZ and Residential , Hyderabad, Hiranandani Palace Gardens, Chennai , 23 Marina, Dubai.
We are an ISO 9001 – 2000 certified company. iranandani were the first to transform the barren landscapes of Maharashtra’s Powai and Thane regions into vibrant, ultra modern and premium mixed – used townships with the best of amenities and facilities within easy distance.
We were the first to create living spaces amidst greenery and not merely include greenery in living spaces. Through emphasizing on interweaving living spaces with a veritable wealth of nature, we have embodied a concern for bringing man closer to nature in every walk of life. Also, applying rain water harvesting methods, package sewage treatment plants, Bio methanation plants, and a Horticulture unit and a nursery, further integrate man with nature. The verdant beauties of Hiranandani Gardens Powai, Hiranandani Estate, Thane and Hiranandani Meadows, Thane are testimony to our corporate belief that to create better communities, it is first essential to create greener communities and provide quality lifestyle and homes. Our motto is, Provide Value for Money.
The Hiranandani Group has ushered in an era marked by higher standards of living and global lifestyles. With its far sightedness to spot the shifting societal trends, Hiranandani Group is today a leading real estate group in its flagship business of construction with a pan – India as well as international presence.