CREDAI Seeks Stimulus to Pump up Affordable Housing

June 30, 2009	(1 votes, average: 1 out of 5)  Loading ...
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The real estate developers in the country are banking on affordable houses to come out of the current crisis which has worsened with a slump in demand from the IT sector. The Confederation of Real Estate Developers Association of India (Credai), the apex body of the builders in the country with over 4000 members, has sought incentives and tax relief from the government in the forthcoming Union Budget for affordable housing sector to encourage builders to take more such projects. According to Credai chairman Mr Kumar Gera, who was here for the formation of Kerala chapter of the association, the price for affordable housing sector in the has been found to be Rs 2700 per sq ft., which would include cost of land, construction, services and infrastructure. “ If we can construct houses 300 to 400 sq ft. then it be would affordable to a vast sections of people in the tier 2 and 3 towns at this price ,'’ he said.

The association has asked for special concession and tax relief for houses up to 1000 sq ft. and to provide the status of infrastructure developer for builders going for special residential zones in more than 20 acres for facilitating access of finance. Raising the tax relief limit to Rs 3 lakh, is another demand, which Mr Gera feels has elicited good response. Decline in the growth in IT sector from a level of 23 % to 17 % has been one of main causes for the meltdown in the realty sector, Mr Santosh Rungta, Credai president said. But in the last two months some positive signals have emerged with a rise in the demand for office space from telecom sector, he told ET.

Mr Rungta said residential properties which are rightly priced are still saleable even during this difficult period. To maintain the right price, however, the government should rationalize the stamp duty, which at 15.5% is the highest in Kerala when the national average is 5 to 8 %. The National Housing policy has recommended the states to bring it to 2 to 3 %.

News Published Under:   Real Estate Developers |

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