Industry status to realty need of the hour: Credai prez-elect Ram Reddy
Says discipline, reforms, and integrity key to real estate’s growth in future
Hyderabad: Gummi Ram Reddy, the newly elected National President Elect of the Confederation of Real Estate Developers’ Associations of India (Credai) and Chairman of the city-based ARK Group, has outlined his vision for India’s real estate sector, emphasizing the need for discipline, transparency, and reforms to support sustainable growth.
In an exclusive interaction with The Hans India, Reddy discussed regulatory challenges, industry expectations, technology adoption, labor shortages, and the importance of green initiatives in shaping the future of real estate.
Reddy acknowledged that the Real Estate (Regulation and Development) Act (RERA) has brought much-needed discipline but admitted smaller developers struggle with compliance. Filing quarterly returns has proven especially difficult in tier-2 and tier-3 cities. To address non-compliance, he proposed an automatic linkage between project permits and RERA registration. “The moment a developer secures a permit for projects above 500 square meters or more than eight units, it should automatically be registered with RERA,” he said, adding that such a move would curb unorganized players bypassing the law. Credai has long demanded “industry status” for real estate. While Reddy confirmed there has been no final decision, he remains hopeful that recognition will eventually come, bringing financing and policy advantages.
At both Telugu states and national levels, Credai continues to lobby for smoother approvals and rational reforms. In Andhra Pradesh, for instance, the body helped push changes such as higher permissible building heights and scrapping of NALA charges. In Telangana, Reddy suggested reducing the 10 per cent mortgage rule to 1–2 per cent for RERA-registered projects. Welcoming the government’s recent move to reduce GST on cement from 28 per cent to 18 per cent, Reddy said it was unfair to classify cement as a luxury item when it is essential to all categories of construction.
“The real benefit will depend on whether manufacturers pass on the tax cut to buyers,” he noted, while also urging a reduction in the 18 per cent GST rate on works contracts to make housing more affordable.
One of his key demands for both Telugu states is effective single-window clearance. “Currently, a single permission can take months or even years, with approvals required from multiple departments,” he said.
He advocated automatic circulation of applications to relevant departments with clear timelines, along with rationalizing norms for environment and airport authority clearances. Reddy also called for revising the affordable housing cap from the outdated Rs45 lakh to at least Rs90 lakh to reflect inflation.
Highlighting labor shortages as a pressing challenge, Reddy stressed the need for better wages and working conditions for workers, while also pointing to technology as a long-term solution. From ready-mix concrete to precast walls, he said technology adoption is no longer optional but a necessity. Reddy reaffirmed Credai’s commitment to green initiatives, including reforestation projects across 9,000 acres, promoting green building certifications, and incorporating sustainable practices such as solar energy and low-water fixtures. “India cannot achieve net zero overnight, but real estate developers are already contributing significantly,” he said.
On Hyderabad’s growth, Reddy said the city has emerged as one of India’s leading real estate hubs, hosting some of the tallest skyscrapers and witnessing robust demand in both residential and commercial segments.
Reflecting on his personal journey, Reddy, who entered the sector in 1989 and has held several leadership roles in Credai since 2008, said his experience gives him a unique perspective on the challenges faced by developers nationwide. His parting message to fellow developers was clear: “Promise only what you can deliver, and ensure that you deliver it. Unethical practices may offer short-term gains, but they will destroy credibility. Transparency and integrity are the only way forward.”
