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News & Views on Indian Real Estate

Wednesday, October 29, 2008

Realtors To Approach PM For Help


Following the footsteps of financial institutions and aviation companies, the real estate sector also plans to approach the government for a relief package. Realty industry bodies such as the National Real Estate Development Council (Naredco) and Confederation of Real Estate Developers Association of India (Credai) are all set to approach Prime Minister, Mr. Manmohan Singh with their wish-list next week. Mr. Rohtas Goel, Vice-President of Naredco, and Chairman and Managing Director of Delhi-based Omaxe Ltd, said, "Our main demand is that affordable housing should be withdrawn from section 80 IB (10) and moved to section 80 IA. The government has to make houses less than 1,500 sq ft in area tax-free. Even the stamp duty should be waived for affordable housing projects," Mr. Goel said. "Our second demand is that banks restructure the debt they give to builders and lower the rate of interest," he added. Credai, a real estate body that has 10 member associations from various states, has already dashed off a letter to the PM seeking a meeting. Mr. Lalit Kumar Jain, VP, Credai, said, "We want the government to instruct banks to take proactive measures to create liquidity in the market. We also want the government to do away with taxes it has imposed on developers for building residential properties." Mr. Jain said a developer pays 35% tax for the development of any residential project. Realtors want these taxes cut to zero.

Pawan said...

And why should realtors be given these sops? They are not doing any national service. They are working for their own profits. They have a problem paying 35% tax but they have no problems with 50-60% profit margins.

And how stupid these realtors are? All over the world, all industries, when sales are down organize a sale. They cut prices. But this cartel is unwilling to cut prices. Lets see who blinks first. Realtors or the customers.

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