PM Abdul Razak was recently elected as the President of the Mangalore chapter of the Confederation of Real Estate Developers of India (CREDAI). A leading builder himself, he shares his ideas on the latest trends in the real estate sector and the problems confronted by it.
Q : Mr Razak, What are the objectives of CREDAI and how do you plan to take it forward?
PMA: The main objective of our organization CREDAI is to bring in Self-Regulation. We will be stressing on every builder who is a member to follow strictly the code of conduct and build each project as per the law with zero violation. They have to also follow the zonal regulations for each project.
Q: How do you plan to tackle the issues concerning the real estate business ? What are the major issues plaguing the industry?
PMA: The main issues are the delay in sanctions from the Corporation , Pollution Control Board and environmental clearances. At the governmental level we are taking up single window clearance which means that we wil be able to cut down on the redtapism in government offices. This would reduce our time and also costs. Cost of raw materials is also on the rise.
Q: What are the reasons for the increase in prices of land in Mangalore and how do you manage it?
PMA: The scarcity of developed land is one of the prime reasons for increase in land prices. Even if the land is available then the peripheral infrastructure like approach roads, drainages , and street lights are not ready. This results in customers not wanting to buy this type of land and which indirectly increases the demand for better quality land. This allows agents to quote a high price for land.
Q: As a builder what are the challenges you face when you deal with District administration, like DC’s office or Corporation officials?
PMA: Well, CREDAI always helps the district officials when it comes to issues with town planning. We give them the necessary information and give a helping hand in collecting data about the market. However, when district officials become too strict with the rules differences crop up and which in turn delays our projects. We always expect the officials to co-operate with us.
Q: Which are the areas in Mangalore that are growing fast and how is the town planning department planning the growth of the city?
PMA: The growing areas are Kulshekar, Surathkal and Derlakatte. Town planning department is not doing enough when it comes to growth. They have to speed up the infrastructure development ,like building of approach roads to the land and drainages. Right now they are not up to the mark. But with the help of CREDAI they are picking up pace and are taking into consideration the issues which we have put before them.
Q: What are CREDAI’s achievements till now?
PMA: We have conducted a workshop on zonal regulations to educate the public about the rules. By this we ensure transparency in our working. In May we are planning to have a real estate developers conference which will be a state-level meet. Issues concerning affordable housing will be discussed during the conference.
Q: Which are the factors that are contributing to the development of the city of Mangalore?
PMA: The influx of jobs into the city in the IT and other sectors contributes to development. Also, the SEZ will help more people come into the city for jobs and they would need office space and also housing. These factors contribute to more real estate projects coming up and thus the city will develop.
Q: What are difficulties you face when you start a new project? How do you cope with them?
PMA: The biggest problem is finding skilled labour for our projects. The skilled labour means jobs like carpentry, electricians , masons etc. Even after 60 years of independence we don’t have enough skilled people. Thus CREDAI plans to open up training institute to train people in skills like carpentry, electricians and masonry. If training is given it might attract more people to come into the city to work for our projects.
Q: How does real estate business contribute to growth of Mangalore’s economy?
PMA: In a place like Mangalore, there is no major industry. Thus as on today only real estate contributes to Mangalore’s economy. Since there are many projects coming up in the city it directly or indirectly leads to jobs being created. Thus 60% of employment is created through real estate. In future with training institutes we will attract the right persons into the business which will boost the speed of completion of projects, resulting in growth of our economy.
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