Undeterred by the real estate crisis after Dubai World’s request to creditors for a standstill on repayment of its $60 billion debt until May, the Confederation of Real Estate Developers’ Associations of India (Credai) has stuck to its original plan to hold its national convention during January 23-25 in Dubai. Around 850 delegates comprising India’s who’s who in the realty and retail sector would deliberate on the main theme, Affordable Housing, while analysing the positives and negatives of the Dubai experience.
Ranjit Naiknavare, executive committee member (national) told Business Standard on Monday, “Dubai was over-priced and it was a bubble (set) to bust. However, what Dubai has done in realty, hotels and infrastructure is quite incredible and there are a lot of things to learn and implement in India. Even though Dubai is in the limelight for highrise buildings and towers, its work in affordable housing is not so publicised. Dubai has developed affordable housing projects comprising 5,000-10,000 houses which can be replicated in our country. These houses are priced at reasonable rates.”
Against this backdrop, Credai strongly believes the affordable housing theme is apt. The phenomenal demand for affordable housing, to the tune of 25 million housing units in Indian urban areas alone, makes this an area to focus on. Whereas low income group (LIG) and economically weaker section (EWS) housing was considered the public sector’s domain, a fresh approach to addressing the housing shortage has been displayed by the private sector over recent years.
According to Credai, private real estate developers are already beginning to play a significant role. The way ahead is still unclear, as significant hurdles strew the path, like availability and cost of land, over-regulation of real estate, and access to low-cost building technology and materials. Funding for affordable housing is also a serious barrier.The proposed meet would debate practical initiatives from developerd. The participants would also look into aspects of research and development, collaborative mechanisms, innovative funding mechanisms and other solutions to affordable housing in urban India.
Credai says developers would put their resources together to ask some hard questions and debate some real solutions to issues such as cost escalation, technology, financing to customers, systems of post-possession maintenances, building volumes without diluting quality, etc. The delegates would also discuss whether rental housing redevelopment and slum redevelopment can be undertaken by developers.
