Credai Kerala has called upon the government to classify affordable housing as infrastructure industry.

“Such a classification, besides boosting the sector, will substantially ease flow of funds and will go a long way in meeting the government’s target of Housing for All,” said Najeeb Zackeria, Secretary General, Credai Kerala.

“Any housing project which has a unit size less than 90 sq metres or 1,000 sqft carpet area can be classified as affordable housing project,” he said.

The demonetisation, according to him, has not affected the industry as most of the sales are financed through housing loans. Post demonetisation will see money flowing in the banking system which will be flush with funds and drive down interest rates on loans.

Already, banks have reduced the rates and with low interest rates, real estate industry will get a boost, as buying a house becomes attractive due to lower EMI on loans.

“The recent developments such as passing of the Real Estate Regulation Act, GST and the government’s focus on infrastructure will serve as positive factors for the growth of real estate industry,” he added. However, Abdul Azeez, General Council member and Paulraj, CredaiPresident, said the stamp duty in Kerala is on the higher side compared to other southern states, and the government should reduce it to three per cent in line with the National Housing Policy. Similarly, the registration charges should be brought down to one per cent as prevalent in other states.

Credai also urged government to implement a single-window clearance for the industry which will speed up the approval system and help in the ease of doing business.

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