House prices down 15-20% in 18 months, say developers

About 25-30% of total units launched are unsold across country

Home prices have come down by 15-20 per cent over 18 months, according to the Confederation of Real Estate Developers' Associations of India (Credai).

“There is no scope for further reduction,” Getamber Anand, its president, told reporters. Across India, 25-30 per cent of all launched units are unsold, he said.

Credai says it will issue data on the sector, in partnership with rating agency CRISIL. This is to include inventory, prices and new launches and will start from the first quarter of next year. It has asked central and state governments to rationalise taxes on the sector and adopt a 'single-window approval' process for projects.

Also, it says, contractors should be held responsible for non- payment of provident fund or Employees State Insurance contributions for their labourers, instead of developers, as the former are the principal employers. "We (developers) have been raided by PF department officials. If contractors do not pay, we are held responsible," Anand said.

Credai's vice-president, Rohit Raj Modi, said there was duplication of tax in the form of ESI/PF, as the sector already pays one per cent labour cess to the government and about Rs 27,000 crore is unused in that account.

"We want ease of doing business. Compliances are too much, which delays the projects. We want single-window approval and simplification of tax," said Credai's head for the National Capital Region, Manoj Gaur.

Anand said the tax on developers amounts to Rs 350 a sq ft in housing projects, on average.

Credai also wants that the sector not be subjected to both stamp duty and a goods and services tax rate.