Karnataka government should relax norms under 'ease of doing' business: CREDAI

'From CREDAI, we are emphasising government for ease of doing business in Karnataka because long procedures for approvals and clearances is delaying the projects,' VP of CREDAI said.

Published: 15th May 2019 06:14 PM  |   Last Updated: 15th May 2019 06:14 PM   |  A+A-

Credai logo used for representation.

By PTI

BENGALURU: The Confederation of Real Estate Developers' Associations of India (CREDAI) Wednesday demanded that Karnataka government should relax norms under the 'ease of doing business,' emphasising that the affordable housing in the city was set to boom.

"From CREDAI, we are emphasising the government for the ease of doing business in Karnataka because long procedures for approvals and clearances is delaying the projects," said R National Vice President of CREDAI, Nagaraj Reddy told reporters here.

He appealed to the state government to reduce the stamp duty to one per cent for affordable housing on the lines of Telangana government.

"Stamp duty in Telangana for Affordable Housing is just one per cent. As of now, it is 6.6 per cent (in Karnataka). For plan sanction and licence fee, we are almost paying around Rs 80 per sq ft inclusive of all the clearances. For affordable housing, we have asked the government to fix the rates at Rs 20 per sq ft," Reddy said.

Noting that Whitefield, Hosur Road, Sarjapur Road and Mysuru Road up to Bidadi was set to develop in terms of affordable housing due to Metro Rail connectivity, Reddy said the segment ranges between Rs 45 lakh to Rs 65 lakh, which is in great demand.

"Our sales capacity in Bengaluru is 45,000 to 60,000 apartments per annum. Our production capacity is not that much. CREDAI members can only produce 35,000 apartments per annum. Some unsold stocks of luxury apartments may be available. As per the affordable segment, there is no stock at all," Reddy said.

Another segment would be 300 to 400 square ft apartments, on the outskirts of the city. Those having the capacity to pay an EMI of Rs 10,000 can buy an apartment. "Those who are staying on rent paying Rs 10,000 to Rs 15,000 will be able to buy a house. The government has a policy of housing for all by 2022. We also want to contribute for it," Reddy underlined.

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