‘Housing for all by 2022’ coupled with ‘smart cities’ vision will be the catalyst to propel the real estate industry growth, said a CREDAI resolution at it’s second edition of New India Summit in Mysuru.

CREDAI also highlighted the important and significant role the realtors from smaller cities will play in the long-term growth of the industry and the economy as a whole.

“The apex body, in order to supplement this growth, aims to expand to 300 city chapters by 2019 with the primary expansion taking place in Tier-II, -III & -IV cities,” said CREDAI President, Jaxay Shah, addressing the summit.

The New India Summit in Mysore designed to deliberate the growth of real estate sector in tier II, III & IV cities, saw over 1000-member developers and experts from the real estate sector from across the country attending.

CREDAI strongly believes that focusing on smaller cities, will not only result in quality infrastructure and improved standards of living but also generate growth in employment opportunities in India’s vast hinterland.

CREDAI also took up few policy centric recommendations to sustain the growth and development of the real estate sector across the country including rationalisation of GST, single window clearance for projects and loan restructuring.

a) Rationalisation of GST — In view of real estate being subject to both GST and stamp duties, there is a case that the rate of GST on real estate which stands at 12 per cent, needs to be reduced to 8 per cent across all segments and not just for houses of up to 60 square meters. The current land abatement rate of 33 per cent is also not adequate in case of metros where land costs up to 70 per cent of the total cost of the unit.

b)Single Window Implementation — Lack of implementation of single window clearance is a major reason for delay in projects. It will resolve critical operational issues in the industry and also reduce real estate prices substantially.

c) Liquidity crisis — demonetisation, Real Estate Regulation Act and GST have cast a heavy burden of multiple transitions on the real estate sector. The NBFC crisis has resulted in a liquidity crunch for the sector. CREDAI recommends a one-time restructuring of all real estate loans to enable the sector to emerge successfully from the multiple transitions.

Last mile funding for stalled projects through setting up of Stressed Assets Reconstruction Fund for real estate has become a necessity to ensure delivery of housing units to consumers.

CREDAI Chairman, Getamber Anand, said: “There is no doubt about the need for new urban centers to take the mantle for India’s economic growth from the metro cities and put themselves on the map. CREDAI has worked tirelessly to ensure that emerging cities, with Mysore being one of them, are given the appropriate platform and foundation to prosper.”

Satish Magar, President-Elect, CREDAI, said: CREDAI is now well on its path to enhance its focus and commitment towards the emerging cities of India, clearly reflected in our efforts to expand to 300 city chapters in 2019.”

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