The Hindu Business Line : Why not sell on carpet-area basis, asks Parekh

HOUSING Development Finance Corporation (HDFC) has offered lower interest rates to the property developers and realty companies that would sell property on a carpet-area basis.

The offer was made by the HDFC Chairman, Mr Deepak Parekh, at a seminar on infrastructure and housing development organised by Bharat Chamber of Commerce in association with the Bengal Chapter of Confederation of Real Estate Dealers Association of India (CREDAI).

Currently, builders are selling property on the basis of either the super-built-up area or built-up area. The difference between super-built-up area and carpet area, which is the buyer area, is almost 40-50 per cent.

"Initially, the difference was only 10-15 per cent, but now it has got out of proportion. I feel that the customers deserve to pay exactly for the area of property they are buying," Mr Parekh said.

In this context, he said that HDFC is willing to offer cheaper rates to those companies which would sell property on the carpet area basis. He was critical of several property developers, which were selling property on the super-built-up area basis.

Mr Parekh added that like any other white goods consumer durable product, there is a strong need to offer warranty to housing property because it is probably the most expensive product a person buys during his lifetime.

"If not on anything, there is a need to provide warranty on leakages and maintenance for a few years. The important issue here is the quality that is being offered to the consumer," he said.

He urged Mr Harshavardhan Neotia, Managing Director of Bengal Ambuja Housing Development Ltd, to take the initiative on these aspects. Mr Parekh said that those who would be offering warranties and maintaining good quality would also get a better deal in the market.

Mr Parekh said that the Union Government should start treating housing as part of the infrastructure sector.

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