Housing development is linked to consumer durables

Posted: 08 Oct 2011 05:36 AM PDT

By Murari Chaturvedi

Housing development is directly linked to the fast moving consumer durables. If one have place to live, he will need all the nessicities of life. Traditionally Indian real estate industry has been characterised pre-dominantly by need-based and end-user transactions, which are quite different from most of the international markets, where investment related transactions, constitute a significant chunk of the overall market activity. Housing development opens the way for purchase of household items like, clothing, furniture, and other electrical items. It also generates demand for interior designers and decorators, housing loan providers, washing machines, television sets and other home appliances with which it has forward linkages. For the healthy growth of real estate industry, an integrated approach to housing and its related activities that include institutional support to the industry, is needed. Land as a resource has always been precious. The government have to recognize the fact that the healthy growth of real estate is directly linked to the development of house hold item producing industry. Building industry also needs to be revamped and recognised on strict enforceable rules and regulations since the lives of millions of people depend upon it. Consumerism can not develop without the development of housing development at present and is passing through times when the housing industry is just beginning to take off. It is high time government recognise housing development as separate economic activity for the purpose of computation of GDP by delinking it from banking and other financial services with which it is clubbed at present. This would be in consonant with the practice followed by matured economy. It is only then the health of economy will be measured with housing activities and established direct linkage. The government will have to play a more proactive role as a facilitator. Housing is and has been the core activity in human habitation. Housing industry is giving the maximum taxes to the government to function, so it must be given priority and the place it deserves.