New Delhi: Real estate developers' apex body CREDAI today said the government has assured that it will look into the problems of the realty players and work towards lowering the cost of funding by banks and other lenders. The real estate sector has been demanding for a long time steps by the government towards reduction in cost of financing for it, saying such initiatives were necessary for property prices to fall from the current levels. The Confederation of Real Estate Developers Associations of India (CREDAI) today said that its Chairman Pradeep Jain had a meeting yesterday with D K Mittal, Secretary, Department of Financial Services in the Ministry of Finance.
"We had a very cordial and fruitful discussion as we raised the various issues being faced by developers across the country in terms of high cost funding and escalating cost of material which adversely affect the cost of housing," Jain said in a statement.
"Mittal promised that the government will look into the problems of the real estate developers and work towards reducing the cost of financing through the banks and financial institutions," he added.
CREDAI said that with these positive developments it is hopeful that a lasting solution to the vexed issue of high realty cost would be worked out soon.
It further said the Secretary has given assurance to "have a detailed discussion on these matters in next couple of weeks to work out on detailed roadmap on how the real estate industry can be benefited to provide the affordable housing on
an affordable price to Aam Aadmi (common man)".
Calling for making make India 'housing surplus' by 2020, from its current position of a 'housing deficit nation', CREDAI said that the revival of real estate industry will
rejuvenate the entire economy, as it supports many industries, generates employment and contributes 11 per cent to the GDP.CREDAI has also written an open letter to the Prime Minister, giving a 10-point agenda of action for taking the nation on an accelerated growth path by solving the housing problems and by bringing in reforms in areas like land, administration, banking and tax for the real estate industry.
The industry body has also been demanding a single window system of clearances to cut down the time lost in granting approvals. "We, the developer community, are always ready to work with the government as a partner in progress and play a meaningful role," Jain said.