Why real estate prices are going up?

Delay in regulatory approvals and heavy taxation are the major factors that add to property prices, says Confederation of Real Estate Developers Associations of India (CREDAI). During the two-day conclave which started in New Delhi today, the various office bearers of the association pointed out the factors responsible for increase in property prices. “The state governments have taxed the real estate sector quite heavily. We will be happy to reduce the prices. But there is no scope to do it,” says Lalit Kumar Jain, chairman, CREDAI, and chairman and managing director of Kumar Urban Development Limited. According to Harsh Patodia, president, CREDAI, West Bengal, and managing director of Heritage Realty Group, the real estate sector requires the long-awaited single window clearance system to get all the necessary approvals for the projects.

The delay in getting approvals directly increases the cost of a project. As per the World Bank’s Doing Business 2013 report, out of 185 economies, India ranks at 182, in terms of getting construction-related approvals. A real estate developer, in order to start construction, has to get as many as 34 procedures from dozens of government departments. On an average, it takes more than 196 days to get through all these procedures, says the report. However, there is no set timeframe within which a developer should receive these approvals. It may take years to get all the permissions and it is mostly at the discretion of the concerned authorities.

The Real Estate Regulatory Bill, which has got approval from the Parliament and is waiting for the President’s consent, has several provisions to streamline the real estate sector operations. However, ironically, there is no provision that deals with the approvals. Citing another major issue flying in the face of the real estate sector, Getambar Anand, president elect, CREDAI, Chairman and Managing Director of ATS Infrastructure Ltd, said: “The Reserve Bank of India (RBI) should help the sector with funds with lesser rate of interest.” C Shekar Reddy, president, CREDAI and managing director, CSR Estates Ltd, said that the real estate sector has immense potential to contribute to the growth of the economy in a significant manner, provided the government addresses some of the major concerns in a time-restricted program.

Source:magicbricks.com

For more Information Sanjay Rastogi,  Real Estate India ,Real Estate Company in India ,  Affordable House in Noida      Email Us Or SMS :SAVIOUR at 5303

 

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Saviour Builders Pvt. Ltd. is one of the leading real estate developers in Delhi NCR. The Saviour Group is the tantamount to deliver contemporary quality amid excellence and diverse innovation. It has emerged as one of the prominent entities in the real estate sector of India and is into residential, commercial and township projects in and around Delhi NCR. The Group devotes its complete dedication to reach higher and build better. With its immense hard work and loyalty, Saviour has accomplished the dream of delivering various tremendous infrastructures round the city. We intend to provide you with affordable houses in the Delhi NCR region. Some of its significant projects like Saviour Greenisle, Saviour Park, Saviour Street, Gaur City -1, Gaur City -2 and many more have created a new benchmark within the trade. Today, we have our presence at Noida, Noida Extension, Greater Noida (West) and Ghaziabad. We, at Saviour, are building homes based on trust and you are invited to build your future with us. We help you live your dream of living in style.

Posted on December 16, 2013, in Real Estate. Bookmark the permalink. Leave a comment.

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