Price set to rise in real estate sector in TN : Chitty Babu, CREDAI

Mr. T Chitty Babu, CREDAI

Despite strong growth potential for real estate in Tamil Nadu, the price per square foot is set to rise in the next two three months as the industry is reeling under a crisis, including high input costs, a top industry official said today.

Mr. T Chitty Babu, CREDAI (Confederation of Real Estate Developers Association of India) National Secretary  said, "If the situation continues for the next two-three months, there is no other option than to increase the price per square foot by Rs 150-Rs 200 to manage this challenge. This is despite good growth prospects and a good long-term forecast,"

Stating that severe input costs is a major constraint, T Chitty Babu, also CREDAI Tamil Nadu unit President, said the industry was facing acute labour shortage. Besides, cement price per bag at Rs 280 kg per bag was the highest in India, compared to states like Gujarat, Karnataka, where it was around Rs 200 and Rs 225 per bag respectively.

Mr. T Chitty Babu also said, ''Tamilnadu must need a single window clearance for speedy processing of approvals for projects.There are now 676 files waiting clearance by government agencies.If the situation persists, then there will be Rs 1, 500 crore revenue loss. The overall estimated real estate projects (in India) are 27.5 million square feet, of which Tamil Nadu constitutes 10%. All files be processed faster for any real-estate development need. In Karnataka it was recently modified to 15 days. But in Tamil Nadu it takes months. We need it to be done in 15 days with more transparency It is because of this situation that the real estate industry in Tamil Nadu is losing many good housing projects to other states."

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