PUNE: Higher input, finance costs, non-availability of bank finance for real estate projects and exorbitant taxes are some of the problems that will be debated in the forthcoming Credai Conclave 2013, which will take place in New Delhi on December 13 and December 14.
Lalit Jain, chairman of the Confederation of Real Estate Developers Associations of India (Credai), told media persons here on Wednesday that permissions from local bodies, state and Union governments take inordinately long time, escalating the coEst of projects, which in turn makes houses more expensive.
Faster approvals will help developers cut down construction period, which in turn will reduce finance costs, create bigger housing stock and make homes more affordable, Jain said. “High interest rates on home loans are also compelling home seekers to postpone their buying decisions,” he said.
Credai vice-president Satish Magar said, “If a residential project falls within the limits of a city, approved under the development plan, there is no need to obtain permission from the environment ministry as the approval to the development plan comes only after considering the impact on environment.”
Magar said the cut off levels for project size which need environment clearance hold no logic. A 20,000 sq meters project need the clearance whereas a project 100 sq meters less in size does not, he said. “It’s a different thing if the project is a Greenfield township, but for areas which have received broader clearances need not be subjected to project wise approvals,” he added.
All these and many more issues which are critical for the healthy growth of the country’s real estate sector will come up for debate in the forthcoming Credai Conclave 2013 which will take place in New Delhi next week,
Jain said the realtors’ body will push for a ‘single window clearance’ regime with stress on need for appropriate coordination between the Union and state ministries.
‘Demand for houses in city stagnant’
times news network
Pune: Residential real estate developers, who have put up a brave front for long saying all is hunky-dory on the sales front, have admitted that the demand has stagnated as home buyers hold back their purchase decisions. Credai Pune Metro President Hemant Naiknavare said that there is a fall in the number of proposals being submitted to the Pune Municipal Corporation.
The delivery cycle of most developers has been disturbed and are liquidity issues, Naiknavare said. “Once approval comes for a project, various payments including premium to PMC become due. Because the sales have stagnated, many developers don’t have the funds to make the payment.”
A fall out of this crisis will be projects getting redefined or broken down into smaller parcels or developers choosing to build high-end luxury houses where the demand and profitability is much better, Naiknavare said.
Naiknaware, however, clarified that there is no vacancy situation in the city. “The demand has reduced and so has the supply. In fact, we may face a tricky situation in a couple of years when there will be no addition to supply as there are no new projects coming in now and demand will still continue. We may see a spike in prices then,” he said.