Realtors seek govt boost
The real-estate sector is facing huge challenges with the government policies. Even though City market has been getting better in last six months, there are few developers who went for approvals. There could have been at least 10 crore sq ft property development sanctions last year. However, the developers did not go for even 1 crore sq ft sanctions, said N Jaiveer Reddy, chairman, Confederation of Real Estate Developers’ Associations of India (Credai).
He said that the banks are stringent in giving loans to the developers. They are demanding double the value of the loan amount as collateral. The other major concern is the LIG and EWS demands from the government. According to GO 45, the developers have to give 20 per cent of the constructed area to the weaker sections at a nominal price. The developers are working at almost no margins. It is difficult to facilitate the requirements of the government without increasing the prices other flats for the middle class, he says.
However, middle class will not be ready to buy the flats if the prices are hiked. “We are ready to take the burden without increasing the prices, but requested the government at least offer the land, development and other taxes be refunded to the builders. It is important to understand the 2030 targets to meet housing demand cannot be met such measures,” he said.
The investors are hesitant to buying flats due to the political agitations. A fast decision from the government will push the sales of the flats in the sector, said Reddy. City has become a major educational capital with premier institutes like ISB, IIT, IIIT, BITS Pilani and NALSAR. Even, retired professionals are looking to Hyderabad due to excellent weather conditions. The metro rail and new phases of water from Krishna and Godavari will make it even more attractive for buyers, he claimed.
Demand for gated communities
There is growing demand for gated communities in the City. The communities will facilitate networking in peer groups with community hall, club-house, swimming pool, game courts. There is 5 per cent price difference with a normal apartment with average costs of Rs.3,000 per sq ft, said Reddy.
Gated communities trend picked up in other states and will be the future of housing in the City. It gives all facilities in the colony like bank, supermarket. Residents do not need to go outside for various basic needs, points out PV Ravindra Kumar, CEO, Vasathi Housing.
For more information please visit: www.vasathihousing.com
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