While demand for sub Rs 50-lakh affordable housing prevails, market players cite increased land rates, escalated construction costs and low margins as key prohibiting factors.
The 31st meeting of the Goods and Services Tax (GST) Council, held in December 2018, deferred a decision to reduce the GST rate for cement from 28 per cent to 18 per cent. This was despite recognising that cement - along with automobile parts - remained among the few mass-consumption items still taxed at the highest slab, which was originally meant for luxury and sin goods.
Locals have witnessed real estate prices skyrocket from a historic low of Rs 6,000 per square yard (in 2020) during Jagan Mohan Reddy's regime to around Rs 40,000 to Rs 50,000 per square yard after elections.
India's real estate market is poised for growth across categories - residential, commercial, and rental. Currently valued at Rs 24 trillion, or about $300 billion, it is projected to surge to $1.3 trillion by 2034, and then grow further to $5.17 trillion by 2047, indicates a report by the Confederation of Real Estate Developers Associations of India (Credai).
The urban development ministry is expected to repeal the existing restrictions on real estate firms by allowing foreign investment up to 49 per cent, free of all conditions.
Credai is the apex body for real estate developers in the country and represents over 9,000 developers through 128 chapters in 20 states
Seek easing of asset classification guidelines for better credit flow.
Association points out that over 40 clearances from various agencies are required for real estate projects.
The Land Acquisition Bill was cleared by the Union Cabinet on Thursday, making the consent of 80 per cent of owners mandatory for private projects.
Mumbai's realty sector will protest against an alleged decision deficit and policy paralysis in both the state and central governments besides various pertinent agencies.
Builders on Friday blamed the Noida and Greater Noida development authorities for the current crisis and warned of similar problems in future due to their faulty land acquisition process.
"Minister Nath has agreed to hold the consultative dialogue from next week in the process of improving the working scenario between developers and the government sectors," he said at the ongoing CREDAI convention being held in Singapore.
Real estate developers said on Tuesday that RBI's decision to cut cash reserve ratio will help improve the liquidity position of various sectors, including realty, but felt that interest rates should be brought down to boost housing demand.
In an effort to change perceptions and build trust, 6,000 real estate developers across the country, who are members of the Confederation of Real Estate Developers' Association (Credai), will sign on a self-imposed code of conduct that embraces best practices in the business, the core team of Credai said at a press meet in Delhi.
Housing prices may rise by 5-10 per cent in the next 3-6 months as the cost of funds for developers is expected to increase following the Reserve Bank of India's decision to raise key policy rates by 25 basis points.
Undeterred by the real estate crisis after Dubai World's request to creditors for a standstill on repayment of its $60 billion debt until May, the Confederation of Real Estate Developers' Associations of India (Credai) has stuck to its original plan to hold its national convention during January 23-25 in Dubai.
Urban development minister Jaipal Reddy said on Friday that he would also ask the finance minister to review his decision to bring the real estate sector under the service tax net. Real estate players were unanimous that the extra burden would be passed to the consumer if, indeed, the service tax is imposed.
Speaking on the sidelines of a seminar organied by Confederation of Real Estate Developer's Associations of India in Kolkata, S C Kumar, senior advisor, Leadership in Energy and Environmental Design said, as many as 160 real estate projects across India, with nine in Kolkata, have got LEED recognition. The Leadership in Energy and Environmental Design green building rating system has been developed by the US Green Building Council.
The West Bengal government plans to enter into joint venture partnership with private real estate developers to promote LIG and MIG housing complexes in New Town near Rajarhat.
Realtors' body CREDAI on Monday said the cost of construction has gone up by 20-25 per cent, mainly during the last 45 days, due to steep rise in prices of raw materials like steel, and builders will be forced to increase property prices from next month by an average 10-15 per cent. CREDAI-MCHI, the Maharashtra chapter of CREDAI, demanded that the central as well as state governments consider giving relief to the industry by reducing stamp duty and GST rates, besides allowing input tax credit (ITC) to developers. The association said it would not advise member developers to stop construction works as of now, but if the price rise continues then builders would have no option but to halt works at project sites and defer purchase of raw materials.
The association demanded that the interest rates for developers as well as home buyers should be brought down to boost realty sector, which is facing a slowdown in demand.
About 25-30% of total units launched are unsold across country.
Owing to the risk perception attached with the segment by banks, the residential realty segment has been increasingly relying on non-banking financial companies and housing finance companies to raise debt financing, reports Abhijit Lele.
The demand for affordable housing is 535,400 units.
CREDAI Chairman Lalit Jain said a long term status quo on interest rates would not help prospective home buyers.
SBI, the country's largest lender, first announced a rate cut of 0.25 per cent in its home loan rates on Thursday, forcing HDFC, the second biggest home loan financier, to respond.
Realty players want single window clearance for all affordable projects, reports Karan Choudhury.
The Supreme Court asked the Centre and the RBI on Monday to place on record the K V Kamath committee recommendations on debt restructuring in view of Covid-19 related stress on various sectors as well as the notifications and circulars issued so far on loan moratorium.
he hike in service tax rate from 12.5 per cent to 14 per cent will increase the costs of buying
A revival in the sector is still 12-18 months away: Experts
After exporters, real estate companies are demanding a priority sector tag for loans to the low-cost housing sector.
However, the realty players will have to pursue their long-pending demands with the state government for abolition of the Urban Land Ceiling Act, speedy approvals to expedite redevelopment of Maharashtra Housing and Area Development Authority buildings, development of cluster development, rental and affordable housing.
Real estate loans could become NPAs for banks.
Realty firms and consultants hoped however that this would be the last round of monetary tightening by the central bank.
RBI, in its first bi-monthly monetary policy statement, left the short-term lending rate, or repo rate, unchanged at 8 per cent and the cash reserve ratio static at 4 per cent.
Cut to 2019, and his name evokes grief and anger among more than 40,000 homebuyers who are fighting for the keys to their flats, which they should have rightfully got more than seven years back.
The earlier ambiguity over bifurcation of the state had affected the real estate business.
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