There seems to be
no respite in the offing for India’s real estate sector at least during the
first half of the calendar year 2014, believe majority of players in the realty
sector, highlighted the The Associated Chambers of Commerce and Industry of
India (ASSOCHAM) survey.
In its survey,
ASSOCHAM representatives received various suggestions from key players in the
real estate sector for revival of the sector as listed below:
** Need for a single window clearance system to
clear all projects instead of seeking approvals of myriad regulators and
authorities thereby saving both time and costs.
** Need to evolve a
rational structure vis-a-vis payment of stamp duties on sale and purchase of
land and housing properties.
** Revise the limit of interest deduction on
housing loan of Rs 1.5 lakh introduced by Finance Act 2001 to Rs. 5 lakh.
** Allow more foreign direct investment (FDI) in
real estate firms to strengthen the industry in townships, housing.
** Built-up infrastructure and construction
development projects to spur economic activity, create new employment
opportunities and simultaneously add to available housing stock and built-up
infrastructure.
On its part,
ASSOCHAM has also given certain recommendations to the government to bring the
realty sector back on growth trajectory which include - repeal highly
restrictive and archaic laws of Rent Control Act and Urban Land Ceiling and
Regulation Act; the government should act as a facilitator and not as a
regulator for real estate projects more so where demand is more than supply;
state governments
should complete land records process and make them computerized; infrastructure
including transportation, logistics, water, power, housing, healthcare,
sanitation and others must be taken in tandem to spur real estate development;
government should grant industry status to real estate sector to facilitate
bank loan and long-term finance for real estate projects and real estate must
be classified as infrastructure and priority lending sector should be made
available to keep pace with demand-supply scenario.
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