Time to grab your dream home! Realty prices may just slip

Those waiting to buy a dream house and unable to because of soaring price may just get lucky now. Confederation of Real Estate Developers' Association of India (Credai) has asked its members to sell maximum number of housing units by reducing the prices to the extent possible.

"The developer community is willing to consider the suggestions made by the Finance Minister P Chidambaram to unlock the value of the unsold stock. We have asked our members across the country to seriously consider the proposal to sell (the unsold stock) in maximum numbers," Credai national president Lalit Kumar Jain said in a statement.

Earlier the government had pressurised real estate sector to reduce prices. Finance Minister P Chidambaram even had asked banks to lend a helping hand to builders. 

Residential properties are almost out of reach of common man due to high prices. This is, infact, adding fire to the fuel as many inventories are lying unsold due to price. According to media reports, half of the 3,23,000 apartments due for delivery in 2013 were likely to be delayed due to problems faced by builders, including lack of financing and delayed clearances.

As per Jones Lang LaSalle a total of 1,60,622 residential units were launched in 2012 in the seven top cities of the country compared with 1,54,701 units for the corresponding period of 2011. These cities are Delhi-NCR, Mumbai, Kolkata, Chennai, Hyderabad, Bangalore and Pune. "The average residential capital values in 2012 appreciated in the range of 1-3 per cent year-on-year," the property consultant adds.

However, realtor body Credai feels there are ways to revive the faltering real estate sector. It says that the government should ask banks to reduces rates of interest for projects and buyers as well and create a congenial atmosphere to encourage affordable and mass housing.

Here are Credai's ten-point agenda to the government to put the economy back on the growth highway:

• Target housing nation surplus and slum-free India by 2020
• Declare housing sector as infrastructure/industry
• Tax exemptions like special affordable housing scheme with income tax, service tax and VAT exemption, similar weighted effect to be given in GST. 
• Comprehensive reforms/administrative reforms: Single window clearance for building approval; streamline multiple levels of clearances, human interface that leads to corruption
• Black Money elimination: Voluntary Disclosure Scheme to covering government officials and politicians, and provision for stringent prohibitive regulations.
• Green Building; 10% tax cut in Income Tax post completion for certified Green Buildings.
• Technology for speedy construction and green buildings
• Comprehensive realty regulator: To have directional powers to cover all stake holders. No discretionary stoppage of work after granting approval for commencement without hearing by regulator/civil court. Documentation to make developers/authorities/buyers accountable.
• Skill Development; special incentives/fiscal support to speed up and improve quality skill development required to create professionals and skilled labour for Real Estate and construction.

nasrin.sultana@network18online.com