New Delhi: Real estate industry bodies on Wednesday said housing sales are expected to improve following implementation of Seventh Pay Commission recommendations as prices have fallen in last few years because of a slowdown in the property market.
Realtors’ two apex associations – CREDAI and NAREDCO – said the sector would also benefit from approval to a model law that allows shops, malls and cinema halls, among other establishments, to run 24×7 throughout the year.
“It’s a very good decision. Hopefully it will lead to wise investment by the government staff for buying homes,” NAREDCO chairman Rajeev Talwar said, commenting on approval for Seventh Pay Commission recommendations.
CREDAI president Getamber Anand said, “Real estate prices are at a low while gold prices are high and stock market is also up. So we expect that investment will come into the realty sector and transactions will increase.”
SARE Homes MD Vineet Relia said the pay hike for government employees and pensioners would “help to flush in more liquidity in the market by broadening the channel of purchasing capacity of nearly one crore employees in India”.
On approval of the Model Shops and Establishment Bill, Mr Talwar, who is also CEO of realty major DLF, said, “It is a positive move. This would lead to increase in employment and economic turnover. Indians should have liberty to shop at any time.”
Mr Anand said developers would benefit from this law as footfalls and sales in shopping malls would increase.
Property consultant CBRE South Asia chairman and MD Anshuman Magazine said, “This is a positive move which will translate into growth across sectors such as e-commerce, organised retail, and the overall services industry, including the daily management of these establishments.”
The act is expected to bring online and offline retailers at a level playing field and boost employment, he added.
“Overall, the retail sector in India stands to benefit from this announcement, including higher footfalls and consumption. In the long-term this could positively impact the warehousing and logistics segment,” Mr Magazine said.
JLL India chairman and country head Anuj Puri said the retail sector accounts for about 15 per cent of the country’s GDP and this is expected to increase further with round the clock operations.
“This Act will have to be implemented by states. Once they have implemented it, offline retailers operating in those states will stand to benefit hugely as the Act brings them on a level-playing field with online retailers.”
“This would also intensify competition between physical and virtual players but benefit consumers and the labour work force,” Mr Puri said.