Chennai: Given the increase in land prices, the Confederation of Indian Industry (CII) on Tuesday said there was a need to improve the infrastructure and increase in flow of capital in the housing segment.
“The only way where land can be available is improving the infrastructure...more young people have started to purchase houses and keeping that in mind, there is a need to provide better infrastructure and connectivity,” CII National chairman (Real Estate and Housing) Anshuman Magazine said.
Stating that in the US market, the value of house and not land value was given more importance, he said in India, it is entirely the opposite, with land value going increasingly upwards than the house.
“If government improves infrastructure and provides better connectivity, one can have a look into Old Mahabalipuram Road in Chennai, the NCR, Greater Noida or even in Thane (near Mumbai),” he said.
Admitting that even if there was better infrastructure and connectivity, still there would be increase in land prices, he said that would happen over a period of time unlike what is happening at present.
“It will happen over a period of time... by the time the land prices go up, it would have given habitat to millions of people,” he said.
On the commercial space front, he said every year there has been considerable increase in demand for commercial space across the country.
“In the last three years, it has gone up significantly. Every year we are adding about 45-55 million square feet across India,” he said.
Magazine and other senior officials of Confederation of Indian Industry were here to take part in the seminar on ‘South Realty-Vision 2020´.
Former secretary to the Ministry of Housing and Urban Poverty Alleviation Harjit Anand said in the housing segment of the country, some 90% of them cater to the economically weaker section of the society. He said the Real Estate Bill, 2011 was on the anvil.