Raising concern over high housing costs in the country, eminent banker Deepak Parekh on Thursday said developers need to shun 'speed money' and focus only on speed in delivering projects to the customers.
Parekh, the Chairman of the country's largest mortgage lender HDFC ltd, also asked regulators to allow banks and housing finance companies to fund land transactions meant for residential purposes, while he sought immediate steps to fast-track numerous approvals required for such projects.
Praising the 'Housing for All' scheme, launched by Prime Minister Narendra Modi, Parekh said that the housing sector needs to get its pricing points right and the focus of developers needs to shift from luxury to affordable housing. “The path to any grand vision is rarely smooth, but some roadblocks can be overcome. One of my greatest concerns is who will physically build in India on the scale required,” Parekh said in his annual letter to shareholders.
Stating that 600 mn Indians will be living in urban India by 2030, he said the country will need to rejuvenate its existing urban areas and create new cities.
“It is the construction sector that has to deliver most of this,” he said, while adding that the sector contributes 8% to India's GDP and constitutes 10% of the country's workforce, translating into 45 million jobs, created directly or indirectly by it.