July 01, 2014
The Confederation of Real Estate Developers Association of India (Credai) has sought tax incentives on development of affordable housing projects and interest rate reduction on home loans to below 7 per cent in its budget wish list to boost growth in the sector.
Single-window clearance for the real estate projects and industry status to the sector were some other demands made by the realtors body.
“Allow Tax (direct and indirect) concessions for affordable housing projects. Presently, interest rates charged by the banks to developers and home buyers are at an all-time peak and need to be brought down. The interest rate at least for home buyers must be brought down below 7 per cent,”
“Affordable housing should be treated as priority sector and favored a separate policy to boost this segment. ,” CREDAI chairman Lalit Kumar Jain said in a statement.
Mr. Jain also advocated an industry status for the realty sector, which would pave the way for easier funding to the developers at lower interest rate.
“The budget document should support a proper REIT (Real Estate Investment Trust) structure. If the long overdue in having a REIT structure is made, it can generate almost 1 lakh crore worth equity replacing debt.”