Hyderabad: Real estate sector is hit with a double whammy
Post COVID there was a rise in farm plots sales and most of these were coming up in the conservation zones.
Hyderabad: The real estate sector in the State is hit with a double whammy. As it is, consumer sentiment to buy is not so strong and the government appears to be not keen on initiating any measures to address the issues being faced by builders and developers.
This is even after builders and developers listing out the issues and making appeals before the government. As a result, the real estate sector, which was in the pink of health till last year, is now going through a lean patch.
The Confederation of Real Estate Developers Association of India (CREDAI) Telangana had listed out several issues to be sorted out by the Government and had evenin made some suggestions in August and yet there was no progress, rues a CREDAI member. To begin with, the real estate body had expressed its extreme concern over the inordinate delay in granting approvals for layouts in districts.
The issue was highlighted during a programme attended by the Irrigation Minister N Uttam Kumar Reddy and Roads and Buildings Minister Komatireddy Venkat Reddy.
The grant of permissions was getting delayed in districts, though the Collectors were entrusted with responsibiity of approving permissions for layouts, but in their busy schedules, least importance was being given to this task, members say.
This apart, applications in the districts have to be enclosed with NOCs from revenue, irrigation, panchayatraj, and R&B departments. Despite all the documents being attached with the applications, officials were insisting for NOCs from all departments again and this was delaying the process further, the CREDAI had pointed out.
It wanted the government to examine extending incentives for affordable housing projects. The Central government levies one percent GST and extends loan-based interest subsidy under Pradhan Mantri Awas Yojana, besides income tax exemption for builders on the total project. Emulating the same, the State government could offer a few incentives, besides reducing stamp duty for such houses.
Since a new master plan is being proposed by the State government, the CREDAI State unit pointed out that there were differences in the regulations for city and districts in the master plan. A uniform model should be adopted, the body had suggested.
This apart, the government was planning to revise the market values. Though CREDAI said it was supporting the decision, it wanted the government to slash the registration charges from 7.5 percent to five percent. In case, if the property was being registered by a woman, an additional one percent reduction should be offered, the CREDAI State unit urged.
Further, it wanted relaxation of norms in the peri-urban zones. As per existing rules, constructions are permitted in only 25 percent area in these zones and as a result, not many layouts have come up. The government could impose height restrictions and relax a few norms to trigger a buzz.
As per GOMs 106, the past government had insisted that layout approach roads have to be 60 feet. While, this was possible to follow for new layouts but it would be challenging for existing layouts where 30 to 40 feet roads have been laid and they should be exempted, the CREDAI had appealed.
Growth corridors have been identified covering one km on either side of the ORR. However, there were no grid roads in these corridors and this was hampering the construction activities in those areas.
Post COVID there was a rise in farm plots sales and most of these were coming up in the conservation zones. However, there was no policy on farm plots and CREDAI appealed to the government to explore possibilities of permitting farm plots ranging from 1500 to 2000 square yards.
