Picture of a Residential Building
CREDAI, the apex body for real estate developers, today called for comprehensive reforms in areas related to land administration, banking and taxation to boost the sector and help end the shortage of 26 million of houses in the country.
After its governing council meet, the Confederation of Real Estate Developers Association (CREDAI) unveiled 10-point agenda to revive the realty sector, which is facing demand slowdown due to high interest rates on home loans.
It has sought single-window clearance for projects and increase in FSI (floor space area), besides cut in interest rates on home loan to 7% for lower income group (LIG) and economically weaker section (EWS). For project financing, it has suggested 9% interest rates.
It has also demanded easing of FDI rules in the realty sector and permission for FDI in multi-brand retail. "We have prepared 10-point agenda for revival in realty sector which we are going to present to Prime Minister," CREDAI Chairman Pradeep Jain told reporters here. Making a case for single-window approval system, CREDAI argued that the property price can come down by 25%.
"We require 48 NOCs (no-objection certificates) before starting construction of the projects. It takes up to 24 months to get these clearances. If we get fast approval, sale price can reduce by 25%," CREDAI President Lalit Jain said, adding that corruption would also come down.
The chamber also asked the government to permit higher FSI of 4 as against the current limit of up to 2.5. "Real estate sector, which supports 250 industries, creates employment and contributes 11% to GDP, has
been treated as step-motherly. This attitude cost consumer directly," Lalit Jain said.
On the real estate regulator, he said the association is not opposed to the regulator if it covers all the stakeholders in the real estate industry and not only builders.
The other reforms demanded include exemption of income tax, service tax and VAT for affordable housing, creation of special residential zone on the lines of SEZ, inclusion of stamp duty in GST, promotion of rental housing through tax incentives and abolition of import duty on specified equipments.