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The real estate sector plays a vital role in the Indian economy, contributing around 13.8% to the GDP and valued at approximately Rs 24 lakh crore. At the National Conference on Changing Dynamics of Real Estate for Viksit Bharat, experts discussed the significance of financial discipline, rationalization of interest rates, and the role of RERA in shaping the future of the real estate sector in India.

Financial Discipline: Key to Successful Projects: 

Sanjeev Kumar Arora, member of Gurugram bench of Haryana Real Estate Regulatory Authority (HRERA), emphasized the importance of financial discipline for real estate developers. He stated that no project can fail if the promoter maintains financial discipline from the inception of the project.

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This includes maintaining a healthy debt-to-equity ratio, which is crucial for the successful completion of any real estate project.

Interest Rates and Demand for Housing:

Arora also highlighted the need for reduced interest rates on home loans to boost demand in the real estate sector. Lower lending rates would encourage investors and homebuyers to invest in real estate, ultimately benefiting both the buyers and the developers. This move would also contribute to the growth of the Indian economy by creating more employment opportunities.

Role of RERA in the Indian Real Estate Sector:

Since its enactment, the Real Estate (Regulation and Development) Act (RERA) has brought about significant changes in the Indian real estate sector. Arora mentioned that approximately 1,25,000 projects have been registered under RERA across India, while around 75,000 brokers have also registered. This regulation has not only brought transparency but also increased accountability in the sector, ensuring that developers adhere to the prescribed guidelines and complete projects on time.

The Importance of Government Support:

Vineet Relia, Director of Urbanbriq Development Management Pvt Ltd, warned that without government support, the real estate sector could face a downcycle in the coming years. He emphasized the need for the government to focus on affordability and provide the necessary assistance to ensure the sector’s continued growth.


Financial discipline, rationalization of interest rates, and the effective implementation of RERA are essential for the sustainable growth of the real estate sector in India. By maintaining a healthy debt-to-equity ratio, reducing interest rates on home loans, and ensuring transparency and accountability through RERA, the Indian real estate sector can continue to contribute significantly to the nation’s economy and create employment opportunities.

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