MUMBAI, 01 SEPTEMBER 2016: With the intent of reviving construction and real estate, the Cabinet Committee on Economic Affairs (CCEA) has approved an array of measures on Wednesday (31 August 2016). These include easing of rules for quicker settlement of disputes, pumping liquidity into the system as also reinvigorate stalled projects.
"The Indian Government has announced an array of measures to revive construction sector," said Niranjan Hiranandani, CMD, Hiranandani Communitiesand Founder-First President, NAREDCO West welcomed the initiatives. "It is a welcome move, and I hope the implementation is done in a time-bound manner." Describing the steps as being 'in the right direction', Niranjan Hiranandani said these steps have the potential to bring back movement to stalled and delayed projects, and bring them back on track.
The construction sector generates the highest level of direct and indirect jobs employing about 40 million people with a 2.7x multiplier effect on Economy, said Niranjan Hiranandani, adding that it is also the second largest contributor to the economy, accounting for nearly 8 per cent of economic activities to the GDP. "Given this background, the initiatives should have a positive impact and should enable further expansion in real estate, construction and infrastructure."
"Some of these positive initiatives reflect the discussions which NAREDCO had with various government agencies during the recent National Convention of NAREDCO in August, and it is satisfying to find most of the points put up before the various officials being reflected in these positive announcements," concluded Niranjan Hiranandani.
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KEY WORDS: Niranjan Hiranandani, CMD, Hiranandani Communities, Founder-First President, NAREDCO West, welcome move, reviving construction and real estate, Cabinet Committee on Economic Affairs, CCEA, easing rules, quicker settlement of disputes, liquidity, reinvigorate stalled projects, array of measures, implementation, time-bound, National Convention
Niranjan Hiranandani is Founder &CMD, Hiranandani Group. His recent initiative is Hiranandani Communities. He is the Founder and First President (West), National Real Estate Development Council (NAREDCO), which works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India.
"Raghuram Rajan keeps policy rates unchanged in his last review as RBI Governor, as expected,": Niranjan Hiranandani
MUMBAI, 09 AUGUST, 2016: The third bi-monthly policy review of 2016-17 was conducted by Reserve Bank of India Governor Raghuram Rajan on 9 August 2016. As expected, he kept the policy rates unchanged.
During the RBI monetary policy review, perhaps, the last that a RBI Governor undertook independently, the RBI Governor noted three 'positives' – first, Kharif sowing has gathered pace; secondly he noted signs of improvement in business confidence, and thirdly, he said that liquidity conditions have eased and yields on government bond have dropped.
"Indications were that the RBI Governor, despite the expected Monsoon rains having actually covered the drought-like situation facing the country, would bring in no changes this time around," said Niranjan Hiranandani, MD, Hiranandani Communities and Founder-President National Real Estate Development Council (NAREDCO - Maharashtra). His stance of inflation remained the same, and he conducted his last policy review with a 'status quo', he added.
The last rate cut announced by the RBI Governor was in April this year, when he had cut the repo rate by 25 bps to 6.50 per cent. Niranjan Hiranandani said that a rate cut at this point of time would definitely have helped reduce the overall burden for home buyers; and this would have potentially, boosted residential real estate sales. "The Monsoon has made a positive start, but food-driven inflation has been an issue which the RBI Governor mentioned in his review as 'an area of concern'. Brexit was also a factor, since it has increased volatility in global financial markets," he added.
One aspect which will remain 'unfinished' is about financial institutions and banks passing the entire benefit of existing rate reductions to the end customer. "The last time the RBI Governor cut key rates in April, he had expressed hope that banks would pass on the reduction to customers - he did not seem happy with the manner in which banks have done this," added Niranjan Hiranandani. "Over the past few months, this has translated into a 'wait and watch' situation, with the RBI Governor waiting for banks and financial institutions to further transmit the rate reduction to end users. In his last review too, he did not seem happy with this aspect," said Niranjan Hiranandani. From an over-all real estate perspective, things are looking better, said Niranjan Hiranandani, adding that he expects 2016 to usher in a time for good news in real estate.
"The good news in real estate is that demand for commercial and office spaces which started picking up in second half of 2015 has continued its growth story through 2016. My Group companies have on-going commercial real estate projects in GIFT City in Ahmedabad, Hiranandani Estate, Thane; and Hiranandani Fortune City in Panvel; and we are handling serious enquiries, most of which are on way to being formalized into actual deals. I look at these positives, and have reason to believe that the momentum these will provide will also help elevate demand for residential real estate in the vicinity of those commercial properties," he concluded.
~ Niranjan Hiranandani is Founder & MD, Hiranandani Group, his recent initiative is Hiranandani Communities. He is the Founder and First President (Maharashtra), National Real Estate Development Council (NAREDCO), which works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India.
"GST offers positive options to real estate; should be 'advantage home buyer',": Niranjan Hiranandani
MUMBAI, 03 AUGUST 2016: Arguably India's biggest tax reform, the Goods and Services Tax (GST) Bill was tabled – and passed - in the Rajya Sabha on Wednesday afternoon. "This is definitely good news, and we hope to see the positive impact being felt by the real estate sector," said Niranjan Hiranandani, MD, Hiranandani Communities and Founder and First President, NAREDCO Maharashtra.
The real estate sector looks upon the Goods and Services Tax to be a harbinger of change, given that the sector currently faces a myriad of indirect tax related issues both, at the Centre and state level, he said.
"From a home buyers' perspective, the key factor would be the GST rate applicable on purchase of residential units. We hope that the GST rate will be moderate, and the transactions get covered under the lower rate schedules," said Niranjan Hiranandani, adding that the model GST law does provide an indication that the home buyer in general could benefit from the introduction of GST, if the GST rates are moderate.
"GST offers positive options to real estate; its impact should be 'advantage home buyer'," concluded Niranjan Hiranandani.
Niranjan Hiranandani is Founder & MD, Hiranandani Group, his recent initiative is Hiranandani Communities. He is the Founder and First President (Maharashtra), National Real Estate Development Council (NAREDCO), which works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India.