Realty biz to remain local play with varying laws across India
Real estate market may have grown in leaps and bounds in recent years, but the business may remain a regional play in the country, as law of land is different in different regions, feel experts.
"There is different process and law in every state for acquiring land, getting approvals for projects and property taxation, which makes it difficult for developers to have a pan-Indian presence," Property consultant Jones Lang LaSalle Meghraj Country Head and Managing Director Anuj Puri told PTI.
He, however, said that some developers like DLF have succeeded to a limited extent in expanding their businesses to other regions.
Noting that realty is a regional play globally as well, Puri said there are not many developers having a global foot print.
Many developers also believe that property sector is a regional business as one need to understand local dynamics to develop realty projects.
"Real estate in India continues to be a regional play with the need to have strong regional knowledge of legal systems and approvals to be successful," Sahara Prime City Chief Executive Officer Sushanto Roy said.
BPTP Senior Vice President (Marketing) Amit Raj Jain: "A strong local knowledge is a must because land acquisitions are governed by typical local issues. We have concentrated our business in Delhi-NCR region".
"Knowledge and acquaintance with politicians and bureaucracy are necessary along with knowledge of local rules and regulations," Kumar Urban Development CMD Lalit Kumar Jain said, citing reasons for regional nature of real estate.
Developers and consultants are of the view that unless there is uniformity in land acquisition process and regulatory approvals, it would be very difficult for developers to have a pan-India presence.
"Unless there is an uniformity in law and process for land acquisition, approvals and taxation across states, real estate would continue to be local subject," Puri of JLLM said.
Roy of Sahara Prime City noted that the absence of any central platform for addressing the concerns of the developers makes it difficult for any regional developer to venture into new geographical region.
Streamlining of land acquisition laws and adoption of single window approach for all development approvals and clearances are some of the measures which need to be taken before one can see any perceptible shift in this trend, he added.