core sector communique

CREDAI anticipates renewed growth for the Indian Real Estate industry in 2010

                               

India, 6th January 2010: The Confederation of Real Estate Developers’ Associations of India (CREDAI) is hopeful of a positive year for the India real estate industry in 2010. The market is expected to return to the 2007-08 level. Given the right opportunity and supportive policies, the real estate sector too will prove effective in driving the country’s GDP growth. Infrastructure development is an area which will play a vital role as increased connectivity in terms of roads, rail, communication, etc., will lead to development in real estate. Development of other asset classes like warehousing, logistics, tourism, hospitality, etc., will also boost real estate activity. With the government’s continued focus on infrastructure development, it seems very probable that the country’s economic revival will be driven by infrastructure growth, which in turn can accelerate real estate activities both in the residential as well as commercial segments.

 

Mr. Kumar Gera, Chairman, CREDAI feels, “This year will be crucial for the housing industry given the government’s concern over the massive housing needs of the people, especially in the urban areas. Supportive policies to encourage and aid the housing requirements of all sections are expected to propel the development in the real estate and allied sectors as well. Affordable housing will be a key factor in driving the sector and CREDAI has already started working on progressive solutions in this area for effective and customized implementation as suited to the Indian situation through NATCON 2010. Also, focus on tier II and tier III cities apart from the metros will help widen the market and generate demand.”

 

The revival of the IT industry too is crucial as it impacts the development of the realty sector to a considerable extent. The economic revival of US will be able to help stabilize the situation as regarding the IT sector as well as Special Economic Zones (SEZs) in our country. In safeguard the interests of the sector, CREDAI has been highly active in urging its members to take the necessary price correction measures which helped the revival process. By the end of 2009, the prices stabilised and sales improved considerably for the housing sector.

 

CREDAI had expressed its disappointment on the Union Budget 2009 and continues to advocate for:

a) Fiscal incentives for encouraging ‘Affordable Mass Housing’ in the country; 

b) Exemption of direct and indirect taxes to boost ‘Slum Redevelopment’ initiative;

c) Increasing deduction on interest paid on Self Occupied Residential House Property; and

d) Incentives to senior citizens on purchase of housing.

 

The proposed Regulation Bill has also been a point of concern wherein the industry had placed its concerns of duplication of laws, lack of compliance by local authorities, issue of project approval, no regulation for errant buyers and few others. In this regard it has urged the government to reconsider the issues and take cohesive measures. CREDAI would be pleased to offer its assistance to the government in this regard.

 

About CREDAI

 

It is the apex body of the organized real estate developers/builders across India, representing pan-India associations of real estate and housing developers. Since its inception in the year 1999, the association has grown manifold with allegiance from 20 state/city level associations viz. Andhra Pradesh, Chhattisgarh, Delhi-NCR, Goa, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal with over 5000 individual member developers encompassing over 60% of the organized private sector real estate development activity in member states/cities in the country. CREDAI has been instrumental in rallying the cause of the Real Estate sector by presenting the issues and concerns of real estate developers to the Government.