Why Real Estate Sector Still Awaits the Industry Status?

Real estate sector is one of the significant profit generating sector of the economy and therefore investors attracted a lot to this sector. In case of India the real estate sector appeared as the second most employment generating sector of the economy after agriculture.

The contribution of this sector to GDP is quite high and therefore its importance and contribution to the economy of the country increase day by day. But still this successful progress of this sector the real estate still awaits for industry status.

Now the question is why real estate awaits for industry status from a long time? Will the industry status able to bring some good things for this sector? What are the benefits the real estate sector will received when it will receive the industry status?

All this question will be discuss in this blog so that you can understand why the ‘industry status’ is so important for real estate sector.

Benefits That the Real Estate Sector Will Receive After Industry Status

It is quite disappointing for the realtor in India that although there is a number of benefits still the sector not received the industry status. The real estate sector a number of other industries like from steel to cement but still awaits for receiving industry status.

The benefits that the real estate sector will be able to enjoy after industry status are:

Easy availability of funds: The developer at present a lot of problems regarding the shortage of funds for real estate development. The availability of funds from various financial will be very easy for real estate sector after it receives the industry status.
Easy availability of lands and digitalization of land records: The price of land is continuously increasing in the country which creates a lot difficulty in the real estate sector for the availability of lands. Land is considered as very important for real estate. The lack of digitization of land record another important issue for this sector. The industry status will make easy the availability of land for this sector and will also be able to solve the problem of digitization of land records.
Easy availability of loan with low interest rate: The industry status will make easier of the availability of loan from various financial institution of the country with low interest rates. Besides the availability of loan will be hassle free at this time.
FDI: The process of receiving Foreign Direct Investment (FDI) will be easier for real estate sector after it receives the industry status.
Easy approval process: The industry status will make the various approval process for real estate sector comparatively easier and it will save a lot of time.
Overcome the liquidity crunch: In present the real estate sector is going through the problem of liquidity crunch and to overcome this problem the sector needs industry status.
Timely completion of the project: As the industry status will be able to increase transparency in real estate and save the times therefore, it can able to ensure the timely completion of the project.
Special focus and schemes will to boost the sector: By receiving industry status the real estate sector will be able to get special focus and schemes for the sector which eventually boost the growth of the sector.
Subsidies: The real estate sector will be able to receive government subsidies after getting the industry status.
Single window clearance: The industry status will ensure single window clearance for this sector which effectively increase the efficiency of the sector.
Relaxation on stump duty: The investor can expect relaxation on stamp duty after the sector receives the industry status.
Attracting equity investment in the sector: The industry status will attract equity investment to this sector.
Reduce the overall construction cost: The overall construction cost will be reduce after the sector receives the industry status.
Large investors can be financing partners: Large investors can be financing partners for real estate sector after it receives the industry status.
Developers can refinance their existing debts: After the real estate sector receives the industry status then the developers can concentrate on refinance their existing debts.
Increase the trust of the investors: the trust of the investors will be increase after it receives the industry status.
Stock exchange: The entry on the market of stock exchange will be easier for the real estate sector after it receives the industry status.

In Summary

There is a number of benefits of getting industry status for real estate sector. Although the sector still deprived from receiving the industry sector, it hopes that soon it will able to receive the industry status.