Confederation of Real Estate Developers’ Associations of India (CREDAI) was aiming to establish a new synergy with the real estate developers and the Government, while rallying their support to push for a single window clearance system.

This could help rationalise property prices and prevent unnecessary delays in project delivery, National President of CREDAI, Gitambar Anand, told reporters in Coimbatore today.

Delay in approval process, abnormal guideline value and high taxation rates are the major problems being faced by the real estate sector, which despite a party in nation building is projected as a negative participant, Mr. Anand said.

A legislative regime like the Real Estate Bill would bolster the Federation’s efforts in promoting dignified business practices, more accountability and providing a level playing field for the developers and buyers, he said.

Claiming that the approval was a cumbersome process, as the developers had to wait for 12 months, particularly in Tamil Nadu, Mr. Anand said the Governments must work out a mechanism so that approval was given within a period of three months.

The President, here to participate in a two-day Statecon 2015, said that another major problem was the tax rate – about Rs.350 per sq.ft. – was the highest in the country and sought rationalisation of the rate on a par with other industries.

Ajit Chordia, President, CREDAI, Chennai, who was also present, said that the sudden increase in the guideline value by Tamil Nadu Government had put the sector in the back foot, due to which transactions were not taking place.

Mr. Chordia sought a roll back on the increased guideline to theDecember 2014 level, at least for one year period, so that there was movement in the real estate market.
To a question on credit deployment, Mr. Anand said that that was another problem, since banks were charging 14 to 16 per cent for real estate, as against 12 per cent for the manufacturing sector.

On the reports that many houses and apartments were remaining unsold, Mr. Anand said that it were not true. In areas like Mumbai and Kolkata, the ready-to-occupy building remaining vacant was just three and six per cent respectively.

Mr. Chordia said that the Statecon would set the agenda for accelerating the real estate growth in Tamil Nadu.