Real estate developers seek smooth ride

Real estate developers in the state have urged the government to remove the 'bottlenecks' coming in the way of faster growth and help them utilise the emerging opportunities in Hyderabad and elsewhere in the state.

Soaring land prices, higher stamp duty, insufficient availability of credit for housing development and the new building norms were cited as some of the problems of small and medium real estate developers by speakers at a joint conference on 'Real estate development "" issues and opportunities,' organised by the Associated Chambers of Commerce and Industry of India (Assocham) and the Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci) here.

Speaking at the conference, Narne Ranga Rao, chairman and managing director of Narne Estates, said that the authorities had allowed only 20 per cent area for residential development leaving the remaining 80 per cent for conservation creating a shortage of land for housing projects in and around the city.

"Such policy constraints will hamper the growth of the real estate sector at a time when five million units are required to be built every year to meet the growing population. There is a shortfall of 25.5 million houses across the country," he pointed out.

Seeking a single window clearance mechanism for real estate projects, he said that about 24 agencies would keep checking the layout approval causing inordinate delays in undertaking projects.

According to him, there is a huge supply gap in housing as well as actual investments required to meet the demand, which could be addressed only through FDI. He also pointed out the lack of any housing policy from the state government.

Shekhar Reddy, president of Builders Forum, said shooting land prices triggered by government auctioning and the new building norms combined with decreasing availability of bank funding brought to a halt real estate projects which were affordable for middle income groups in the city.

The cost of flats too went beyond the reach of average buyers as the built-up area shrunk in the wake of new building norms, he said.