CREDAI defines outlook for the real estate sector amidst challenging times

Confederation of Real Estate Developers’ Associations of India (CREDAI) elucidated its outlook and vision for the Indian real estate sector, at a press briefing held today. The veterans of the real estate sector discussed various issues, like ‘affordable housing’, ‘public-private partnership and infrastructure development’, ‘finance and banking’, ‘state reforms’, ‘taxation issues’, ‘need to educate home buyers’, having impact on real estate development in India.

Present on the occasion were members of CREDAI’s newly elected executive committee for 2009-2011. This included Mr. Kumar Gera, Chairman; Mr. Santosh Rungta, President; 5 Vice Presidents- Mr. Lalit Kumar Jain, Mr. C. Shekar Reddy, Mr. Prakash Challa, Mr. Dharmesh Jain & Mr. Getamber Anand; Mr. Nainesh Shah, Hon. Secretary; 2 Hon. Joint Secretaries- Mr. Mukesh Sheth & Mr. Mohammed Moquim and Mr. G.P Savlani, Resident Director, CREDAI.

Emphasising on the importance of real estate sector in Indian economy, Mr. Gera said, “Housing markets are indicators of the state of economy. The demand and transactions for real estate was at peak when the GDP was at 9%. There is also awareness that this sector employs around 10 million workers through forward and backward linkages to more than 200 services and industries. It shall be our endeavour to suggest the government to formulate policies like separate fast track funding mechanism for affordable housing projects, increase in the limit of housing loan under Section 24 (b) from Rs. 1.5 lacs to at least Rs. 3 lacs etc., and reduction of taxes in the entire life cycle of development. This will help in the growth of this sector including affordable housing.

CREDAI will impress upon the government to remove Service tax on rentals of commercial properties which ultimately add to the burden on consumers. It also proposes to initiate public-private partnership in low income housing wherein land bank available with the government may be provided to the developers.

Elucidating on the outlook and vision of CREDAI, Mr. Santosh Rungta said, “The vision of CREDAI would be to impress upon the Central and State Governments to frame policies which will motivate the home buyers to start acquiring residential units and at the same time provide incentives to the developers to make investments in the real estate sector. All housing loans should be made available at interest rate of 5 - 7% and for EWS & LIG at 3%. 100% rental income should be exempted from income tax for the first 3 years, if the built up space is purchased in the next 6 month.”

CREDAI intends to form a Legal Committee, which shall oversee all legal issues pertaining to the real estate sector. The body would pursue the introduction of Value Added Stamp Duty (VAS) for the housing industry, wherein, any stamp duty paid towards the purchase of land will be adjusted from the stamp duty paid at the time of sale of the property. CREDAI will also continue its endeavour to educate home buyers and ensure greater transparency and professionalism in the sector.

About CREDAI: It is the apex body of the organized real estate developers/builders across India, representing pan-India associations of real estate and housing developers. Since its inception in the year 1999, the association has grown manifold with allegiance from 19 state/city level associations viz. Andhra Pradesh, Chhattisgarh, Delhi-NCR, Goa, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal and Himachal Pradesh with over 4000 individual member developers encompassing over 60% of the organized private sector real estate development activity in member states/cities in the country.

CREDAI has been instrumental in rallying the cause of the Real Estate sector by presenting the issues and concerns of real estate developers to the Government.