Infrastructure is a key issue that has to be addressed if urban gridlock is to be avoided, says Kumar Gera, chairman, Confederation of Real Estate Developers’ Associations of India (CREDAI).
He says that according to reports, the population in cities will grow by 60 per cent by 2030.
In five States, the urban population will be larger than in rural areas. By 2030, an estimated 70 per cent of the country’s GDP will come from cities. In such a scenario, infrastructure is hugely important and if it is not addressed, there would be a gridlock. Hence, “greater focus is needed on infrastructure.”
In India, unlike in developed countries, real estate is not part of infrastructure development, which includes roads, power and water.
Affordable housing, play areas and institutions were also real estate-related infrastructure.
Typically, in Indian cities, infrastructure comes after development and thus pushes the prices up in those areas. Those who are unable to afford the cost, had to look to areas with less infrastructure where prices were lower.
In States such as Maharashtra and Rajasthan, developers are encouraged to go in for townships that include infrastructure. On demand in the real estate sector, Mr. Gera says there was a slowdown about a year ago. Real estate came to a standstill in terms of sales and prices did come down by 10 per cent to 40 per cent. Prices had not returned to the earlier levels yet. They have started moving up. Demand for residential units is buoyant in most places.
News Published Under: The Hindu