Vice President M Venkaiah Naidu in a recently held conclave said the real estate sector is showing signs of revival after a period of slowdown. At the same time he also expressed concern over high prices of land parcels especially in smaller cities.
Speaking at realtors’ body CREDAI annual conclave, Venkaiah Naidu said that the construction and real estate sector plays a vital role as it is the second largest job provider after agriculture.
He also said, “After a period of slowdown in the market, the realty sector market is once again showing signs of revival, which is good for the economy.”
On increasing land prices in the smaller cities he said, “The cost of real estate goes up not because of cost of construction but because of land prices. There is need for correction of prices. Prices of land in Indian cities are sometimes equivalent to prices of New York and Washington. Cost of units is going up not because of cost of construction but because of cost of land, land held by middlemen. There is need for correction. Reality has to come in the real estate sector.”
He further hoped that the need of the hour is to implement the best practices as required in the new real estate law RERA (Real Estate Regulatory Authority) which will soon take real estate sector to a higher level.