KOCHI: Amid rising shortage of ready-available land for realty and construction projects, Kerala could look at places like Singapore for a model in housing development, said S N Raghuchandran Nair, chairman of the Kerala chapter of Confederation of real estate Developers' Association of India (Credai). He was talking to the reporters in Kochi on Thursday after announcing 'Credai Conclave 2013', to be held in Delhi on December 13 and 14. The conclave will focus on the theme 'Housing: the game changer leading to double digit growth'.
Real estate has become the largest industry in the state while it is holding the second position in the country. However, the state is left with only 30% of its overall land for realty development, he noted.
"Construction sector now contributes 6.3% of of GDP and it generates Rs 50,000 crore turnover annually in Kerala," he said.
Nair complained that the delay in getting all the necessary clearances in Kerala is one year. "As the project is delayed, the consumers have to bear the interest cost and the increase in building costs," he said. According to a data research conducted among roughly 300 projects by the Cochin Chamber of Commerce and Industry (Cfor Credai-Kochi, 65% of the applicants had to wait for more than three months to get KSEB connection and 101 completed projects still require tanker water.
Real estate developers were of the opinion that as long as the real estate prices continue to be high in the state, affordable housing wouldn't be possible in Kerala.