Mumbai, Sep 22 (IANS): There is an "immense need" for improving the regulatory environment and transparency in the real estate sector, Housing and Urban Poverty Alleviation Minister Kumari Selja said Thursday.

"There is an immense need to improve the regulatory environment, governance and transparency in the real estate sector. We are working on a central legislation to fill the regulatory gaps," she said after inaugurating the eighth 'International Real Estate Summit 2011' organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).

Selja, however, acknowledged that the real estate sector was a real growth driver and the second largest employer after agriculture.

"But the image of the real estate sector has suffered a huge dent due to recent housing scams... and issues relating to land acquisition," she said.

Selja said there was a need to make land acquisitions humane by making the land owner a partner in the urbanisation process and compensating him adequately.

She expressed hope that the new land acquisition bill approved by the cabinet will be passed soon.

Speaking about low cost housing, Selja urged the private sector to join hands with government to make affordable housing a reality.