Builders are more ‘organised’ now
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Issuing of licence to builders will herald a new phase in real sector, writes M. Sai Gopal
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The recent decision of Greater Hyderabad Municipal Corporation to issue licence to developers and builders in twin cities is more and more being perceived as a step, which could bring good tidings to the real estate sector in the future.
Builders across the board feel that this decision should act as a catalyst in heralding a new phase in real estate sector where reforms are the ‘mantra’ for investor friendly environment in Hyderabad. A few more such decisions would go a long way in streamlining the sector, they aver. It is a known fact that builders had been lobbying for such reforms since a decade with the State Government. Issuing of licence to builders was a major demand because that would bring them into the organised sector bracket. “There was no comprehensive directory of builders recognised by the Government till now. Foreign investors, especially NRIs, always insist for recognised builders to take up projects here. This was a major handicap for ‘committed’ builders and developers,” points out President for Builders Forum for Andhra Pradesh C. Sekhar Reddy. While architects, structural engineers and designers are recognised by various agencies, it was the builder’s community, which felt short-changed on this issue. The reason for that was the lack of mechanism to differentiate between ‘fly by night’ operators and genuine builders. “We generally sell ourselves by word of mouth. Reputation in our business is very important and I feel perhaps if we are recognised by government, it would add to our profile,” feels C. Rajendra Prasad, a builder from Visakhapatnam. Others point out that this system is far better than the grading system, which was mooted by GHMC. “In grading system, there is a fear that builders with high rating would dominate the market by forming a syndicate. Licensing is better, because it puts everyone on an even keel,” points a member of Andhra Pradesh Chapter of Builders Association of India.
Experts also maintain that this step should be precursor to bring-in brokers or real estate agents into the ambit, which would be a boon for the investors. Legitimacy also brings with it responsibility. “A licensed builder has to be a responsible person and behave properly. He can’t take customers for a ride by promising them moon and in the end ditch them. Licensing is the best way to regulate them. Moreover, the rules to apply for licensing are not that stringent,” points out S. Narasimha Reddy, President for Andhra Pradesh Chapter of Builders Association of India.
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