CREDAI to seek govt’s aid in boosting real estate
Aug 24, 2015
Source : Toi
NASHIK: The Confederation of Real Estate Developers' Association of India (CREDAI), Nashik will seek the government to reduce taxes and speed up the building plan approval and environment clearance process to make housing affordable, in the backdrop of RBI governor Raghuram Rajan advising builders to reduce rates of unsold flats the real estate sector.

The CREDAI has decided to approach chief minister Devendra Fadnavis in the next couple of weeks to urge him to take some measures for affordable housing. The association's decision comes following RBI governor Raghuram Rajan's advice to the builders to reduce rates of their unsold flats during a banking workshop held in Mumbai on Thursday.

Speaking to TOI, president of CREDAI, Nashik, Jayesh Thakkar said, "The RBI governor had recently advised builders to reduce the rates of unsold flats to boost the real estate sector, which is already facing recession for the past few years. The prices of cement, steel and other materials have increased a lot in the past few years. But instead of increasing the rates, we have already reduced the rates of flats by 10% to 20%, so far. Our profession will be at stake if we reduce the rates further. The central and the state governments have set a target of housing for all by 2022, but it will not be possible unless the government takes some efforts to speed up housing projects and reduce taxation."

He further said, "There is a need to speed up the building plan approval and environment clearance process. The building plan approval process takes more than four months, while environment clearance process takes a year or two. Delay in projects also leads to increase in their cost. The burden obviously goes on the consumers. Moreover, there is need to reduce the rate of interests for housing from the present 9.50% to 8% in the interest of the consumers. Moreover, we have to pay up to 14.5% in the form of various taxes like 5% stamp duty, 1% surcharge under Local Body Tax, 1% labour cess, 3.5% service tax, 1% Value Added Tax and 2% development charges, which leads to rise in property prices. Hence, the government needs to reduce taxation and speed up the building plan approval and environment clearance process if it really wants affordable housing. We have decided to approach CM Fadnavis in next couple of weeks for the purpose."

The CREDAI Nashik is also preparing a presentation on the measures needed by the government to boost affordable housing. Thakkar added, "The presentation on affordable housing is to be given to the CM during our meeting with him."


Latest Realty News

Aug 22, 2015
Panaji: Pointing out that the government collected approximately 216 crore as infrastructure tax from 2009 to 2015, CREDAI - Goa questioned the government's lack of interest in providing necessary infrastructure like road, water, sewerage and electricity connections to housing and commercial projects. The real estate developer's body also urged the government to implement Regional Plan 2021 in order to avoid confusion in the minds of consumers and real estate developers.
Aug 22, 2015
NEW DELHI: A day after RBI governor Raghuram Rajan advised builders stuck with unsold inventories to cut rates, realtors' body CREDAI on Friday said there is no scope to reduce housing prices and demanded that interest rates on home loans as well as taxes should be reduced to boost demand.
Aug 21, 2015
Mumbai: Piling inventory levels of real estate players in the country on Thursday brought the controversial 'teaser loans' back into focus, with State Bank of India asking the Reserve Bank of India to allow lenders to sell loans below the base rates.
Aug 21, 2015
DEHRADUN: An estimated 1,500 hectares of prime land housing tea gardens - many of which were planted by the British in the city - is lying neglected with the tea plantations there barely able to produce tea of substantial quantity.
Aug 21, 2015
BELAGAVI: Belagavi unit of confederation of real estate developers association of India (CREDAI) will be hosting 'Statecon-2015', an annual state level convention of CREDAI, Karnataka this time in city on September 2nd and 3rd. Union urban development minister Venkaiah Naidu will inaugurate the event.
Aug 20, 2015
New Delhi: Over 55,000 home buyers will now get possession of their flats in Noida as the government issued the final notification demarcating the Eco Sensitive Zone (ESZ) around Okhla bird sanctuary, realtors' apex body CREDAI said on Wednesday.
Aug 20, 2015
Reserve Bank Governor Raghuram Rajan on Thursday made a case for reduction in property prices given the high inventory of unsold flats across the country.
Aug 20, 2015
New Delhi: Average apartment sizes fell by up to 26 per cent in last five years across seven major cities in the country as developers are making smaller flats to boost their sales in a sluggish housing market, according to global property consultant JLL India.
Aug 20, 2015
BHUBANESWAR: The long-awaited bill to amend the Odisha Apartment Ownership Act, 1982, is scheduled to come up in the assembly during the monsoon session, which started on Tuesday.
Aug 19, 2015
NEW DELHI: As many as 55,000 home buyers will benefit immediately from the government's move to reduce the area of the eco-sensitive zone around the Okhla Bird Sanctuary here, leading real estate developers said.

Latest Realty News Of State

Realty Talk's