Mumbai Developer’s Mega Unity Conclave
Brihanmumbai Developers Association (BDA) ‘Mega Unity E-conclave,’ held yesterday was the biggest such event that brought various developers associations, channel partners associations, architects engineers associations and allied associations together on a common platform for the first time ever to highlight the pain points of real estate.
In the face of adversity comes opportunity. The COVID-19 crisis offers the real estate industry a ‘never before’ opportunity to reset and redo to reinvigorate cities like Mumbai. However, this can only happen if specific policy changes are announced by the authorities. These were the key takeaways from the discussion.
Harrish Jain, Vice President, Brihanmumbai Developers Association (BDA), explained, “Real estate has been facing multiple problems and now the current crisis of COVID-19 has added to them. Earlier we were communicating differently with the government and that was not the right way. Uniting the associations will give us a voice which is stronger and will help us to communicate with the government in the right way. We have to be united together to achieve progress. Let us brainstorm and see how to get solutions out of this. Since there are so many associations participating today, we have to be united to resolve issues. Alone we are a drop, together we can be an ocean. There is strength in numbers, let’s unite together.”
Nayan Shah, President, CREDAI MCHI, made a comparison between real estate as a percentage of India’s economy vis-à-vis that in the USA, UK and China. “About 6% of India’s economy is real estate. India’s real estate value is $1.20-1.40 billion, our share will go up to $500-600 bn in the next 5-6 years. The government of India is spending more than Rs7 lakh crores in agriculture, while the real estate sector is only asking for Rs30,000 – 40,000 crore to grow from $140 bn to $500-600 bn. We are going to try to get relief from the central government and the Reserve Bank of India and the finance ministry, not as a matter of sympathy, but because we have strength and we can make a big difference in the economic status of the country. Apart from the pains that we are passing through, it is important to give this economic data to the Government. Real estate has a price multiplier effect. This is the extent to which real estate can make a difference.”
Ajay Ashar, Spokesperson of the CREDAI MCHI MMR Action Committee stated. “When the Rs 20 lakh crore package was announced we had great expectations from the government as we are the second-largest employment generating sector. However, we were disappointed. Restructuring of loans is very important. Home loan rates to be reduced. So many things we are facing. In a democracy, everything comes down to numbers. We have so many different associations but all our causes are the same. If we unite and speak in one voice, nothing can stop us. If our combined voice reaches, it will resonate. Let’s have one voice, one agenda and one platform. We should stand and support each other. If our voice is unanimous and having common goals we can achieve anything. The economy will be revived only if our industry is rolling.”
CA Ramesh Prabhu, Chairman, Maharashtra Societies Welfare Association (MSWA), affirmed that “We are facing a huge crisis. Redevelopment is the need of the hour for Mumbai; every society is looking for developers to perform but we also understand the challenges faced by them. Applying GST on the rehab portion is a harsh step, the government needs to come up with some package for real estate and redevelopment.”