Realty sector seeks industry status
This will help developers get project loans at lower interest rates, says Credai Telangana
Hyderabad: The Telangana Chapter of the Confederation of Real Estate Developers Association of India (Credai Telangana) on Thursday sought industry status to real estate sector, saying such a move would help developers in raising project loans at lower interest rates.
It also batted for input tax credit on GST, increase in price band for affordable housing and a slew of other measures to revive the slowing sector across the country.
The real estate body however said that the adverse impact of economic slowdown would be lower on the Hyderabad real estate market when compared to other metros.
"Banks are offering home loans to home buyers at an interest rate of 8 per cent. But when it comes to project loans that developers avail for developing residential projects, the interest rates go up to 16 per cent which invariably pushes up the project cost.
We will get project loans at lower rates and can pass such benefits to customers if industry status is granted," Ch Ramachandra Reddy, newly-elected president of Credai Telangana, told the media here.
He further said the GST Council should restore input tax credit (ITC) on GST levied on properties. "GST was reduced 5 per cent, but ITC was removed.
This has impacted real estate sector in tier 2 and 3 cities. Therefore, ITC facility should be restored," he added.
Ruling out any impact of slowdown on realty sector in Hyderabad so far, G Ram Reddy, newly-elected Chairman of Credai Telangana, said: "there are chances of slowdown impacting the market here.
But the impact will be much lower compared to other cities as Hyderabad has several distinctive advantages such as low prices, better infrastructure and good government policies".