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Union Home Minister Amit Shah on Friday asserted that the adoption of green building norms should be the “new normal” in the housing sector, and asked developers to build low-cost homes as well as provide labourers with skill training.
Addressing a conclave of the realtors’ apex body CREDAI in New Delhi, the minister stressed on making the land market transparent, while expressing concerns over land banking and speculative holding.
Shah also highlighted 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 building materials would help in reducing the cost.
“The reduction in cost would help builders in providing 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.
Green building norms, energy-efficient design, water recycling, provision of rainwater harvesting system 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 the cost should not increase much by adding green elements.
The minister asked all builders to keep in mind green areas and plantations while designing housing projects, and said this would not affect their profitability.
“In the coming days, we have to make the land market transparent,” Shah said, adding that cities need to move away from land banking and speculative holding.
In this regard, Shah further said that the industry should do self-regulations so that the government does not need to intervene.
The minister said there is a need to further boost the credibility of this sector.
Talking about the RERA law, he said there were a lot of apprehensions from the industry when the law was passed in 2016.
“When we look back, nobody can deny that the RERA has played an important part 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 force in May 2017.
The RERA has brought structural reform in the real estate sector, he said, adding that this law has helped in protecting homebuyers’ interests, transparency in property deals, and improving quality construction.
At present, 35 states and Union Territories are implementing this law. There are 1.55 lakh projects registered.
He said the customers do not hesitate to buy properties if the projects are registered under the RERA.
On GST, the minister said the maximum benefit has been given to the real estate sector.
He highlighted that the GST on cement has been reduced to 18% from 28% recently. The GST on many other building materials has been reduced.
“Overall, there is a possibility of a 5-7% reduction in cost because of the latest GST reforms,” he said, adding that this would enable builders to provide more facilities to customers.
Also Read | Mumbai real estate posts strong long-term returns; Juhu clocks nearly 2x returns
Shah said the rapid urbanisation will provide huge opportunities to the real estate sector in the coming years.
The minister said the government is moving forward with a vision in urban development, and responsible developers are part of this vision.
Speaking at the event, Union Minister for Environment, Forest and Climate Change Bhupender Yadav said the government is providing environmental clearance within 90-110 days as against 650 days under the previous government.
Yadav also spoke about the need to develop green real estate projects and achieve net zero emission goal.
The minister asked builders to focus on the recycling of electronic waste apart from solid waste management.
Addressing a conclave of the realtors’ apex body CREDAI in New Delhi, the minister stressed on making the land market transparent, while expressing concerns over land banking and speculative holding.
Shah also highlighted 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 building materials would help in reducing the cost.
“The reduction in cost would help builders in providing 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.
Green building norms, energy-efficient design, water recycling, provision of rainwater harvesting system 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 the cost should not increase much by adding green elements.
The minister asked all builders to keep in mind green areas and plantations while designing housing projects, and said this would not affect their profitability.
“In the coming days, we have to make the land market transparent,” Shah said, adding that cities need to move away from land banking and speculative holding.
In this regard, Shah further said that the industry should do self-regulations so that the government does not need to intervene.
The minister said there is a need to further boost the credibility of this sector.
Talking about the RERA law, he said there were a lot of apprehensions from the industry when the law was passed in 2016.
“When we look back, nobody can deny that the RERA has played an important part 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 force in May 2017.
The RERA has brought structural reform in the real estate sector, he said, adding that this law has helped in protecting homebuyers’ interests, transparency in property deals, and improving quality construction.
At present, 35 states and Union Territories are implementing this law. There are 1.55 lakh projects registered.
He said the customers do not hesitate to buy properties if the projects are registered under the RERA.
On GST, the minister said the maximum benefit has been given to the real estate sector.
He highlighted that the GST on cement has been reduced to 18% from 28% recently. The GST on many other building materials has been reduced.
“Overall, there is a possibility of a 5-7% reduction in cost because of the latest GST reforms,” he said, adding that this would enable builders to provide more facilities to customers.
Also Read | Mumbai real estate posts strong long-term returns; Juhu clocks nearly 2x returns
Shah said the rapid urbanisation will provide huge opportunities to the real estate sector in the coming years.
The minister said the government is moving forward with a vision in urban development, and responsible developers are part of this vision.
Speaking at the event, Union Minister for Environment, Forest and Climate Change Bhupender Yadav said the government is providing environmental clearance within 90-110 days as against 650 days under the previous government.
Yadav also spoke about the need to develop green real estate projects and achieve net zero emission goal.
The minister asked builders to focus on the recycling of electronic waste apart from solid waste management.
