Real estate developers should partner with civic bodies to create infra, assess urban impact of projects: MoHUA Secy

Real estate developers should work with civic bodies to create infrastructure and assess projects’ wider impact on water, sewage and energy, MoHUA secy has said

Real estate developers should work closely with municipal agencies to create the physical infrastructure needed to support housing and commercial projects and assess the impact of every project beyond its boundaries, from the water it displaces, the sewage it generates, to the energy it consumes, D Thara, secretary (Department of Capital Development), in the ministry of housing and urban affairs, said in the Capital on Sep 18.

“Every development creates an interaction with the larger urban environment, and we need to understand and mitigate the externalities that construction can create for the city,” she said at CII’s real estate conference on ‘Evolving Landscape of Indian Real Estate: Navigating Growth, Innovation and Institutionalization.’

Real estate developers should work with civic bodies on infrastructure and assess projects’ wider impact on water, sewage and energy, D Thara, secretary (Department of Capital Development), in MoHUA said at the CII Real Estate Conference held in the Capital on Sep 18.

She also asked real estate developers to focus on rain harvesting, water recycling and sewage treatment.

The day-long discussions underscored the growing importance of sustainable urban development and the need to embed environmental considerations into planning and approval processes.

Calling for a new public-private paradigm in urban development, the Secretary asked real estate developers to work more closely with municipal agencies and assess the impact of every project beyond its boundaries, from the water it displaces and the sewage it generates, to the energy it consumes and the infrastructure it requires.

Thara also told real estate developers to consider a broader definition of value, one that measures not merely the property's price but also the infrastructure burden, resource consumption and environmental impact.

“Real estate is no longer just about brick and mortar. It is a living fabric of communities, shaping how people connect, work, live, shop, entertain and experience their surroundings. The focus is increasingly moving beyond the physical structure to creating inclusive, vibrant and sustainable environments that enhance the quality of life,” said Sriram Khattar, co-chairman, CII National Committee on Real Estate and Housing and Vice Chairman and MD, DLF Rental Business.

Participants also deliberated on how emerging sectors, expanding economic corridors and the rise of new cities are reshaping demand patterns and creating fresh opportunities for the real estate sector.

“If we want to develop real estate at scale, approvals must become faster and more integrated. A true single-window system should allow applications to move simultaneously across different authorities, rather than developers having to approach each department separately,” said Harshvardhan Bansal, chairman, CII Delhi State and co-founder, Unity Group.

Housing affordability: CREDAI-NCR calls for faster approvals, lower taxes and cheaper capital

Participants also focused on the need to improve housing affordability through systemic reforms across the real estate value chain. Speakers highlighted the need to improve land availability and infrastructure connectivity, reduce development costs and create more efficient financing mechanisms to expand access to housing.

Addressing the CII Real Estate conference, CREDAI-NCR president and Ashiana Housing MD Vishal Gupta said the sector faced a shortage of quality contractors and skilled labour, which was pushing up construction costs.

Gupta said the implementation of RERA over the past few years had brought greater transparency and trust to the real estate sector, but this needed to be complemented by greater ease of doing business and faster approvals.

“RERA has brought a significant amount of transparency and trust back into the system. But we also now need to layer it with ease of doing business, thereby reducing the inefficiencies of delay,” he said.

He pointed to delays in building plan approvals, RERA registrations and other compliance processes as factors affecting housing affordability. Gupta also called for rationalisation of taxes, noting that the lack of GST input tax credit for real estate adds to costs.

He also stressed the need to increase the supply of land for development and reduce excessive reliance on plotted development, which he said was putting pressure on land resources.

Gupta also called for greater availability of affordable capital, saying developers need a more predictable regulatory environment and greater certainty to attract investment into the sector.