New Delhi CREDAI Conclave 2013 : Due to Inadequate Funds Access by the Builders the growth of Indian Realty Sector is Stunted..

In India the funding to the real estate sector is just 3% to developers, and 9% to house buyers

Confederation of Real Estate Developers’ Associations of India (CREDAI) organized the  “CREDAI CONCLAVE 2013”, with a theme, “Housing the Game Changer – Leading to Double-Digit GDP Growth”, at New Delhi..

Delivering the key note address at the real estate conclave Mr. C. Shekar Reddy, President, CREDAI National told  “The major concerns of the real estate developers / promoters in  India are - The rising price of plot , labour & input costs, High  taxation, High cost of funding due to lopsided funding by banks / housing finance companies, stunted cash flows, delays in approvals and NOCs &  besides the outdated   Floor Space Index - FSI Norms .Need to restructure the approach to help the Indian real estate sector contribute more significantly to the Nations Economy.”

Commenting on the issue of funding for the real estate sector Mr. C. Shekar Reddy told “The Indian real Estate sector suffers from another drawback. This sector faces  many restrictive norms in accessing the bank finance. In India the funding to the real estate sector is just 3% to developers, and 9% to house buyers. Due to inadequate funds access by the developers the growth of the sector is stunted. If the funding is made available from the banks both the growth of the sector could be raised and costs of the house flats could be brought down. “

He expressed his concern while comparing the lending percentages with other countries and said “The Indian scenario is disturbing as the lending percentage in US is 32% in China it is 22%. Compared to these numbers, the Indian lending is just 12% when the lending to developers and to the home buyers is combined. He averred that this must increase and the banks and governments have to search their hearts whether the policies they are adopting are consistent with the growth ambitions.”

CREDAI - National Secretariat

703, Ansal Bhawan,

16, Kasturba Gandhi Marg,

New Delhi-110 001.

Tel:(011) 43126262/ 43126200

Fax:+91 11 43126211

Email:info@credai.org

For more information please contact

Nishanth M: 98840 70861

Konnections

E mail: nishanth@konnections.co.in

Web Site: www.konnections.co.in

Share: