COIMBATORE, July 19: Confederation of Real Estate Developers Associations of India (CREDAI) is aiming to establish a new synergy between real estate developers and government, while rallying its support to push for a single window clearance system, industry body's National President Gitambar Anand said today.
This could help rationalise property prices and prevent unnecessary delays in project delivery, he told reporters here.
Delay in approval process, abnormal guideline value and high taxation rates are the major problems being faced by the real estate sector, which despite a party in Nation building is projected as negative participant, Anand said.
A legislative regime like the Real Estate Bill would bolster the Federation's efforts in promoting dignified business practices, more accountability and providing a level playing field for the developers and buyers, he added.
Claiming that the approval was a cumbersome process, as the developers have to wait for 12 months, particularly in Tamil Nadu, Anand said governments must work out a mechanism so that approval was given within a period of three months.
Anand, here to participate in a two-day Statecon 2015, a conference organised by CREDAI, said another major problem was the tax rate, about Rs 350 per sq ft, which was the highest in the country and sought rationalisation of the rate on par with other industries.
Ajit Chordia, President of CREDAI Chennai, said the sudden increase in the guideline value by Tamil Nadu government has put the sector on the backfoot, due to which transactions were not taking place.
Chordia sought to rollback the increased guideline to December 14 level, at least for one year period, so that there was movement in the real estate market.
To a question on credit deployment, Anand said that was another problem, since banks were charging 14 to 16 percent for real estate, as against 12 percent for the manufacturing sector.
On the reports that many houses and apartments remained unsold, Anand said it was not true. In areas like Mumbai and Kolkata region, it was just 3 and 6 percent, respectively of ready to occupy buildings remaining vacant.
Chordia said the Statecon will set the agenda for accelerating the real estate growth in Tamil Nadu.
