Real Estate's Revival is Economy's Survival

Renowned American economist Dr. Christopher Thornberg famously said: "Economy Is Real Estate Driven, From Top To Bottom."

He isn't wrong. He clearly indicates that if Real Estate industry is not in shape, it will drive down the economy, from top to bottom. CRASH. And reasons are many and plenty.

PERSPECTIVE:

No matter what the enthusiasts and optimists say, the Indian economy has been sliding down the slope ever since the Real Estate was put on ventilator due to back to back policies such as Demonetisation, GST, and RERA. For those who find this difficult to comprehend, let me take you down the road less travelled and least acknowledged.

Real Estate provides one of the three basic necessities of human life, Makaan. The ongoing lockdown and migrant workers humanitarian crisis has only magnified the importance of this basic need more than ever. The other two basic necessities of human life, Roti and Kapda, are incomplete without Makaan. Be it an unbranded 'Roti' or an unbranded 'Kapda', the real estate space is always a necessity. Be it a gala, shop, mall or large office, every commercial activity needs Real Estate. Be it a Chawl, Flat or Bungalow, every human being needs a house. From bhiga to acre to square feet, Real Estate occupies an inseparable aspect of human life.

CONTRIBUTOR:

It is an undisputed fact that Real Estate is the 4th highest contributor to GDP at 15%. Add another 10% from more than 275 plus ancillary industries who are solely dependent on Real Estate industry, from nut & bolt to steel & cement, from brick & mortar to elevators & gensets, from paint to putty, indirectly contributing to GDP and at total of 25%, Real Estate is the 2nd highest contributor to GDP, both direct and indirect contributions combined. Isn't this enough for recognition?

This reminds me of famous middle order batsman, The Wall, Rahul Dravid, who would come to bat after the top order collapsed. He takes you home safe but the credit goes to someone who scored more than him.

PROVIDER:

Sadly, the least acknowledged fact is that the Real Estate industry is 2nd largest employer in the country, directly employing more than 90% of unskilled population and more than 70% semi skilled population. Add to this, the employment generated by 275 plus ancillary MSME industries dependent on Real Estate sector and you have India's largest employer, still struggling for recognition. If this is not step motherly treatment, then what is?

REVITALISER:

A healthy and robust Real Estate is a revitaliser for so many other industries. Imagine the number of goods required after taking possession of an empty flat or office. From White Goods to Furniture, from Electricals to Electronics, from Interiors to Exteriors, from Utensils to Automobiles, hundreds of sectors of economy will get a boost. This is the ONLY industry which directly and indirectly contributes to so many other industries. A booming Real Estate is the best tonic for a healthy economy.

CREATOR:

Real Estate is all about asset creation, value enhancement, wealth creation and development. Real Estate creates non perishable assets. Real Estate creates Equity and Pride. Real Estate creates landmarks and destinations. Yes, Real Estate creates ECONOMY.

ATTRACTOR:

Devoid of glamour and yet attracts investors from domestic and international markets. Real Estate has been one of the biggest destination for Foreign Direct Investment (FDI) in the recent years bringing in valuable foreign currency into the country. While many other industries are setting up base abroad, Real Estate industry has been wooing foreign players to come to our country and set shop here. Can we be more patriotic?

BANKER:

It wouldn't be wrong to call Real Estate as Bank's Banker. Because Banks bank on the collateral from Real Estate whenever they lend money to their customers. Be it home loan, education loan or construction loan, the collateral is always Real Estate asset. And Real Estate collateral is risk free and most bankable security for their lending. Besides, the banks raise money on the Real Estate assets mortgaged with them. So, why not call Real Estate sector Bank's Banker or Banker's Bank? Either way, it makes sense.

GENERATOR:

From Panchayat to Nagar Parishad, from Municipal Council to Municipal Corporation, from State Government to Central Government, Real Estate is the single source of revenue with maximum varieties of taxations. GST, stamp duty, registration charges, property taxes, plan approval charges, TDR charges, fungible FSI charges, premiums, commencement certificate charges, occupancy certificate charges, excavation royalty, fire NOC charges etc are major source of revenue for the government at various levels. Even after GST is implemented, the government continues to collect these levies, taxes and charges separately from Real Estate industry.

Sadly, the apathy and lack of empathy towards this crucial sector, has dealt a big blow to the economy.

Real Estate's Revival is Economy's Survival.

O Government! Listen To My Cry!