Housing prices may fall as approval for projects likely to become faster

Housing prices may fall as project approval is likely to be faster after government's decision to delegate powers to local bodies for compliance of green norms for 20,000 to 50,000 sq-mt projects, CREDAI said Tuesday.

The apex realtor body, which has more than 12,000 members, said the time taken for approvals of housing projects is expected to come down by at least a year.

The central government last week took a decision to delegate powers to local bodies to ensure compliance of environmental conditions for buildings, construction and area development projects between 20,000 and 50,000 square metres.

CREDAI President Jaxay Shah said this decision would lead to transparency and ease of doing business in the real estate sector.

"The resultant reduction in time consumed in procuring approvals as well as reduction of costs will also give a boost to the entire housing sector, especially the affordable segment," he added.

Shah said there would be no dilution in the environmental laws and rules by delegation of power to urban local bodies.

CREDAI said this move would lead to "better implementation of environmental laws and reduce the gestation period by a minimum of 12 months, thereby making housing cheaper for homebuyers."

The decision will also lessen the multiplicity of approvals that are usually needed to attain clearance and will lead to sustainable growth.

CREDAI termed this decision as a big relief and a step towards the right direction.

"With the urban local bodies already being responsible for granting completion certificates to real estate projects, this decision will further strengthen the onus on them to ensure environmental provisions," the association said.

CREDAI also suggested that the environmental clearance of the entire city should be incorporated in its development plan itself at a macro level instead of plot based micro-clearance as practiced at present.

Established in 1999, The Confederation of Real Estate Developers' Association of India (CREDAI) has developer members from 23 states and 203 city chapters across the country.