Developers perspective on World Bank Rankings
The government is understandably preening over India having moved up 23 places to rank 77th in the World Bank’s Doing Business rankings of the World Bank.
Parth Mehta, Managing Director of Paradigm Realty, “In past one and a half months, the real estate market was facing a negative sentiment with IIFLS, DHLF, Indiabulls stocks crashing. As a developer our home loans got delayed and customers wondered if mortgage companies would support home loans. The ranking has come as a sentiment booster where people have understood that the Indian economy is in control. 80% of people are banking on home loans and this ranking has given confidence to the customers. Also, the parameters that have been mentioned about the permits for eg the construction permits will go higher, availability of power, electricity will go up and in terms of enforceability of documents and contracts, resolving of insolvency these are all positive measures which is a ideal dream for any entrepreneur to take up any kind of establishment. I think this is a good move that the government is making to try and come back in force. It is more towards theoretical terms as of now but with the implementation of DP, the environment norms have been changed from 20,000 mtrs to 50,000 sqmtrs. The safety and fire norms have become more clearer and well versed. Overall I feel things are headed towards better macro-environment.”
“The World Bank’s annual ranking report on ease of doing business which highlights India’s jump to the 77th position is a remarkable sign of our country’s progress. The significant leap in the ranking of ‘construction permit’ from 181 to 52 position can be attributed to the continuous efforts taken by the government to bring in more transparency in the real estate sector through various policy reforms. The market is also seeing slow signs of revival with infrastructure developments, as well as investments being done by actual end-users. Moreover NRI’s are also looking to invest money in the sector, which reflects the enhanced confidence in the buyers.” Expressed Manju Yagnik, Vice Chairperson, Nahar Group.
Shishir Baijal, Chairman and Managing Director, Knight Frank Indiasaid on India improving its performance in ease of doing business as per the World Bank’s Doing Business Report, “The real estate industry has been amongst the top beneficiaries of government’s effort to improve the ease of doing business. While the overall performance has improved to 77th rank, ranking in ease of obtaining construction permits has improved a phenomenal 129 positions from rank 181 to 52 in a single year. A variety of other structural reforms which may not be reflected in the rankings like Benami Properties Act, affordable housing initiatives, RERA, REITs and GST have brought a paradigm shift in the industry structure thus increasing transparency and making the industry organised. Such sustained efforts will go a long way in attracting global capital and the impact of the reforms is already visible in the alacrity with which global investors like Blackstone, CPPIB, GIC, Brookfield and Xander to name a few are participating in Indian real estate market. In the backdrop of this improvement in rankings, we expect the participation of global investors to strengthen further in the years to come.”