CREDAI Calls for Single Window Clearance
It is being pointed out from time to time, that full potentials of real estate’s contributions to infrastructure sector have not yet come tothe fore. What is holding it up?
I would attribute it to corruption in the approval processes. When the people work under a stigma, they are not given due credit and opportunity. In fact, Urban Development as a subject can easily be handled by real estate developers. The complete spectrum of the subject is touched more or less by each developer and hence it needs to be only amplified as infrastructure business.
To realize the full potentials of real estate sector in the country; what sorts of enabling policy environment in terms of financing and functional facilities are needed?
First of all, we need building approval within 4 weeks of acquiring land. This will be realized through single window clearance. We have launched Mission Transparency, if implemented, it will see better consumer satisfaction and speedy approval resulting in sale price reduction by 10 to 25%.
Coming to finance sector, RBI has been making statement based on Delhi and Mumbai markets which are not more than 7% of entire real estate. Also if developers do not reduce rates, the better method is to push supply side so that prices remain stable. By chalking the fund flow to Real estate Industry the product is made costlier as the borrowing cost from non conventional sources goes up.
Housing has been an important concern for all including CREDAI. What is Association’s estimate of housing shortage in the country and investment needed to come as near as possible to our goal of having housing for all in the next 3-4 years?
Housing shortage as defined by planning commission is 27 million, however if you apply dignified living criteria you will add double the number to this figure.
I define under dignity accommodation as “If a family of parents, husband and wife and two children are staying in one or two bedroom."
Affordable housing scheme has made its desired impact due to the availability of liberal financing options in the country. Today, when technological and construction material options are affordable, what is not affordable is the cost of land. What needs to be done to make land cost affordable to push affordable housing scheme forward?
There is no affordable housing available in this country. What available are low budget homes at inconvenient places. The cost component in a house sale is as under:
Material (ever increasing), Labor (ever increasing and lately spiraling), Taxes (30 to 36%) of sale value, Approval cost (10 to 40%) of sale value, Land (due to FAR norms) are very high.
If you wish an affordable housing, to become a reality then the state and central government will have to come together.
Do you think that uniform formula of Floor Space Index (FSI) across the country is the need of the hour to meet the housing shortage and simultaneously building more space both for the builders and home owners alike?
FSI concept in itself is self-defeating and putting pressure on land. It also reduces green cover as restriction pushes urbanization horizontal. Global science talks of high density vertical growth. This will save green cover and also make physical infrastructure like mass transport systems, drainage, water etc viable.
What are the viewpoints of CREDAI on the forthcoming Land Acquisition Bill? Is it going to solve the problems or will put real estate sector and its beneficiaries in a bind? What problems CREDAI foresees and solutions it recommends?
We in CREDAI feel this is 180o shift again a failing act.
Following provisions will have to be deleted.
- Bringing private land purchase above 100 acres in the preview of the act.
- Twice the value to be paid for 30% land acquisition
- Three crop land cannot be acquired.
Real estate has a crucial role to play in the urban development process in the country. But by and large, it lacks public trust as much as that both public as well as the Government is wary of its promises and delivery of assured end products. How CREDAI Mission Transparency would sensitize publictrust and confidence. What is the focus of Mission Transparency unveiled by the Association recently at its conference in Singapore?
We hate corruption. We say we are victims of the situation and not the beneficiary. We have also made it mandatory for individual developer to sign a code of conduct. This will protect consumer. Now we expect government to support our cause in national interest.
A word about CREDAI’s various initiatives for skill development at the working level as well as professionalizationin business operations at higher levels?
We realize that the skilled labor in this sector is need of the hour. CREDAI has participated in NSDC as equity holder and started a pilot project in Pune.
We are also initiating an institute for creating professionals for Real Estate Sector. So we have complete focus on the issue.
