Real estate industry, which is the second largest employer after agriculture in the country, is confident that the Centre would not rock its boat when the provisions of the new Direct Taxes Code relating to property investments are finalised, according to the Confederation of the Real Estate Developers' Association of India (Credai), Coimbatore chapter.

The association, which is organising the third edition of the property fair ‘Fairpro 2011' here during August 5-7, expects the three-day fair to generate bookings worth Rs 50 crore.

Speaking to newsmen here recently, Mr Madan Lund, Chairman, ‘Fairpro 2011, organised by Credai, Coimbatore, said this year's show has drawn the largest participation by 32 developers and four financial institutions and about 10,000 properties with over 12 million sq ft in area would be on offer. He expected the fair to generate bookings of about Rs 50 crore, much higher than the Rs 32-crore business generated in the previous year's fair.

He said apart from the properties booked during the fair, for which builders would come out with special concessions and lenders may offer some reduction in fee they charge, the enquiries the fair generates would help builders book properties over a period of six months. Hence the actual impact of the fair would be much greater than the expected Rs 50 crore spot booking during the fair.

Mr Lund, commenting on the impact of rising interest rates on home loans, said it was the lower end of the market in the sub- Rs 20-lakh range that was sensitive to interest rates but this did not significantly impact the high-end market in the Rs 20 lakh to Rs 1 crore range.

Asked how much the proposed changes in the DTC with regard to capital gains in the sale of property that is used for fresh investment in real estate would affect the real estate sector, he said the Centre was aware of the role played by the construction sector in employment generation which was next only to agriculture and was hopeful that it would not rock the boat since infrastructure development was also one of its core mantras.

Mr Omkar Sankar, Vice-President, Credai, Coimbatore, felt that any impact due to changes in DTC with regard to property sales would only be ‘short-term' as it happened in the case of service tax levy earlier.

Describing the real estate market in Coimbatore as very robust, he said the average annual sales of apartments in the city was expected to go up from the 3,000-4,000 units now to 5,000 units/year, particularly with the area under the Coimbatore Corporation limits set to expand with more areas around it brought under the city Corporation's fold and as the diverse industries in the city, including IT, were doing well. The rental rates also continue to move upwards here.

He said as land prices, which constitute the major portion of the project cost, have remained high in Coimbatore, property prices might not weaken in the city, though prices might also not skyrocket as it happened a few years back.

Mr V. Subramanian, President, Credai, Coimbatore, said his organisation has planned to open a redressal forum to which the consumers could bring their grievances relating to any property issue concerning its members here.

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