Time for State Govt to Get into Act- Developers

December 22, 2008	(Be the first to rate this story!)  Loading ...
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Home loan interest rates are coming down but that is not enough. There is another major contributor to high costs of built-up space — the State governments, say developers. They have to do their bit — expedite clearances of project, bring down stamp duty and other levies, and so on — to ensure that prices come down to affordable levels. State governments should also look at rental options to ensure citizens have adequate affordable shelter in the urban areas. Also, it is up to the State governments to ensure affordable housing by setting clear targets and involving the private sector through public-private partnerships.

These views were expressed at a seminar on affordable housing organised by the Confederation of Indian Industry and the Confederation of Real Estate Developers Association of India, in Chennai. As for the definition of affordable housing, the seminar covered residential units ranging from a few lakhs to up to Rs 35 lakh. Industry representatives pointed out that State government taxes account for 35-40 per cent of the cost of built-up space. Project approvals could take up to two years that is a big addition to the cost of land as interest mounts. On the average, selling price of about Rs 3,500 a sq.ft, the government’s share of taxes and utility charges can go up to Rs 900 a sq.ft, they said.

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