The Real Estate in Orissa took its turn very lately in comparison
to other states. The conservative attitude towards flats and
habit of a community living is still in its infancy. However,
last ten years experience of real estate market in Orissa shows
the pulse of inevitable growth. Even though the major cities
of the Nation face market slug, our state gets going because
of its not so superficial price tag.
MAJOR ISSUES CONFRONTING THE REAL ESTATE SECTOR TODAY:
1. There are no barriers to entry. Just about anybody can become
a real estate developer.
2. The image of all real estate developer is maligned even though
there are many professional developers in the state who follow
the letter of Law and deliver good products.
3. Lack of availability of capital - as available to other industries
in the state.
4. Delay in obtaining clearances for projects.
5. Anomalies in the tax structure, high levies and their implementation
procedure encourage practice of parallel economy.
6. Consumer who only look at rate per square feet while making
their purchase decision.
THE INDUSTRY IS SEEKING FROM THE GOVT. TO HELP ACCELERATE ITS
GROWTH:
The main change needed is for the Govt. to accept that real
estate development is a part and parcel of the state's infrastructure
development efforts. Accordingly, real estate development which
is the face of the infrastructure needs to be classified as
infrastructure development, and therefore, get all support and
priorities that is being accorded to the infrastructure sector.
In addition, the Govt. needs to implement its National Housing
and Habitat Policy. Almost all the issues have been addressed
in this policy. Sadly, the implementation at the Centre and
more so at the state level is lacking.
PROFESSIONALISM, CODES oF CoNDUCT, ETHICS IN THE INDUSTRY:
This sector is highly fragmented. Consolidation in terms of
it becoming a professionalised sector will happen onlywhen an
enabling environment is created which puts into place barriers
of entry, but at the same time does not create new corruption
avenues by introduction of these barriers.
REDA already has byelaws, and a code of conduct in place since
last few years. A bold and rigid implementation of the same
also gives some set backs to the members, but it helps getting
rid of unscrupulous operators out of REDA and for some to organize
themselves to be fit for the Association. This is one step ahead
in the right direction towards professionalism.
TACKLING THE ACUTE HOUSING PROBLEM:
The state Govt. owned Orissa State Housing Board is the only
supplier of Housing in our state by the Govt. It is not desirable
to narrate the misery of this organization and its clients.
But it is certain that what options the Govt. has other than
the private participation in tackling Housing problem in the
state. It is high time for our Govt. to look forward for a solution
leaving behind all orthodox approach to problem more so when
all problems have already been addressed and solutions documented
and approved by the Parliament in the form of the National Housing
and Habitat policy. What is now required is its speedy implementation
without trying to reinvent the wheel each time.
Anup Kumar Dhirsamant
