It is vital that the realty sector has to be granted an industry status. Housing being the pivotal need for mankind the real estate sector is still to be recognized as a priority sector.

The realty sector has always been and shall continue to be a major driving force towards the development and economic growth of the country. Inspite of generating numerous employment opportunities it is extremely ironic to believe that the real estate sector awaits to be granted industry status. The sector has also turned out to be of key benefit to more than 175 odd ancillary industries like cement, steel, brick, timber, building material. These industries are dependent on real estate sector which can help them to profoundly generate income.

It seems a bit incongruous that inspite of contributing immensely to the Gross Domestic Product (GDP) growth the sector has still not been recognized. If the sector is entitled as a structured industry the real estate sector would be facilitated with innumerable benefits in long run. One of the primary benefits would be to obtain funding from the financial institutions. The cost of raw materials is a huge challenge faced by the realty estate industry. High-ceilinged prices of raw materials such as steel, wood, and increase in labour cost has resulted in the sky-rocketing prices of projects over last few years. If the industry is structured funding from financial institutions could be at ease.

The responses we receive from the banks are not always timely and positive. In this case if the developers need financial aid from the banks to complete their project and if the response by the banks is cynical they have to find alternate options for funding. This leads to delay in completion of projects and definitely adds to the cost. Many a times, developers have to turn to private financer's who levy heavy interest rates thus making home-buying a costlier affair.

		Mr. Dhaval Ajmera is an MBA in Finance from the Cardiff University. As a Director of Ajmera Realty & Infra India, his primary role is to plan out strategies, project coordination, and looking after the overall operations of the organization. As a Marketing Head, he is also assigned to create an effective, cost-efficient Marketing strategy and execute the promotion plan to achieve the business objectives.

The State & Central Government will also change its insight towards the realty sector if it is treated at par with the infrastructure sector. The RBI, banks and other funding & financial institutions will treat the sector as a priority sector once it's recognized at par with infrastructure sector. The funds provided by banks, financial institutions will help the sector to access funds at more competitive interest rates and at the same time it will lead to facilitate more flexible lending norms. Granting the real estate sector an industry status will allow it to gain access to organized funds at a faster pace. Although the real estate agents do not face any issues currently they will definitely welcome this move. But if the real estate sector is granted an industry status it will positively bring in optimistic impact and work as an advantage for the real estate agents. The entire process will bring in more transparency and will regularize the process. It will further lead to getting in cut-throat competition in the industry. As the supply in the sector will increase the role of real estate agents will become more and more critical.

It will be a win-win situation for both realtors as well as home buyers. Having been granted with industry recognition status, it will directly benefit homebuyers. It will allow home buyers to gain access to organized funds from banks and financial institutions. They will get easy funding at better rate of interest making financial transactions more transparent there by the housing can be made affordable. The new status will bring in transparency and simplicity to the assessment to the complete process. As the cost of funds will go low buyers will find investment in realty more affordable. Also the industry status will bring in more clarity, transparency between the developers and buyers and the time required for the permission process will expedite and decisions will move at the faster pace. In case of any more inputs do keep me posted.

Over the past four years our fraternity is waiting to endow industry status to the real estate sector which is one of the key sectors in terms of development. The government is now gearing up to give the industry it's much required title, having said that the proposal of giving real estate sector an industry status has already been submitted to the finance ministry.