NEW DELHI: The real estate regulatory law should be implemented in such a manner that it encourages entrepreneurs to enter this sector and does not hinder growth of projects, DLF Chairman K P Singh has said.
In a message to shareholders, Singh said effective implementation of innovative initiatives such as Make in India, Start Up India, Housing for All, Smart Cities, Digital India and REITs will have a powerful positive impact on the growth of the real estate sector.
Welcoming the passage of the Real Estate (Regulation & Development) Act, 2016, he said the new law will contribute in a large measure to transparency, complete disclosures and clarity to buyers of real estate products.
“The government should ensure that the Act is implemented in such a manner that it encourages the largest number of entrepreneurs to enter the real estate industry and not curb growth of the projects,” Singh said.
He expressed confidence that this much-needed sectoral reform would foster a conducive business environment.
The real estate regulatory law seeks to establish the Real Estate Regulatory Authority for regulation and promotion of the sector. It will ensure sale of plot, flats or building or project in an efficient and transparent manner as well as protect interest of consumers.
On the property market, Singh said the sector has been constrained by many factors such as sluggish demand, liquidity crunch, regulatory pressure and customer activism.
“Your company has been able to tide over the lean period adopting bold and innovative strategy and certain crucial decisions,” Singh told shareholders.
The DLF Chairman said the outlook for the year ahead remains positive. “The company expects the rental business to continue strengthening. Gurgaon remains one of the most preferred markets in the national capital region for quality office spaces, group housing residential complexes and IT/SEZs”.
Singh said the company will remain committed to providing world-class housing as well as innovative and technologically advanced urban infrastructure.
The annual general meeting (AGM) of DLF, the country’s largest real estate firm, is due on August 30.
DLF posted a net profit of Rs 549 crore and consolidated revenue of Rs 9,819 crore during the last fiscal. Net debt stood at Rs 22,202 crore at the end of 2015-16.
The company’s rental business comprises over 31 million sq ft with annuity income of about Rs 2,600 crore.