STOCK MARKET BSE NSE

Ahead of Union Budget, Tamil Nadu's real estate sector dreams of one-time restructuring scheme

The demand comes in the wake of failure of several big NBFCs, which has hit developers with liquidity shortage.

Published: 01st February 2020 06:39 AM  |   Last Updated: 01st February 2020 12:04 PM   |  A+A-

real estate, apartments, buildings

For representational purposes

By Express News Service

CHENNAI: Confederation of Real Estate Developers Associations of India (CREDAI) has urged Finance Minister Nirmala Sitharaman for a one-time restructuring scheme with moratorium on principal and interest rates for a period of two years.

This comes in the wake of failure of several big NBFCs, which has hit developers with liquidity shortage. CREDAI has urged that banks and financial institutions be given discretion to one-time restructuring or rollover of their existing loans to other sectors.

‘Increase the limit’

S Sridharan, Chairman of CREDAI, Tamil Nadu chapter, has asked for affordable housing limit to be increased to Rs 75 lakh from Rs 45 lakh. He also said that CREDAI should be a universal definition of affordable houses.

"It should comprise of units with a carpet area defined under Real Estate Regulatory Authority (RERA), that do not exceed 60 square meters in metros and 90 square metres elsewhere," he said. This comes as residential launches in Chennai grew by 11 per cent YoY to 11,542 units in 2019. Similarly, sales for residential properties here rose by 6 per cent YoY, to 16,959 units in 2019, according to property consultant Knight Frank.

‘Reduce interest rates’

Meanwhile, Builders Association of India (BAI) chairman S Ramaprabhu said the association has sought interest rates for affordable housing to be reduced to 3 per cent only, and for housing loans below Rs 1 crore, a 6 per cent interest rate was demanded. He said they have also sought a waiver from the stamp duty for affordable homes and an income tax rebate on interest on housing.

‘Enhance IT exemption limit’

R Kumar, MD of Navin’s suggested enhancement of the exemption limit of Rs 2 lakh on the interest paid on housing loans under section 24 of Income Tax Act, to a minimum of Rs 5 lakh.

He also said the Pradhan Mantri Awas Yojana Scheme, which benefits middle income group housing units, come to an end on March 31, 2020. "We expect the budget to extend the date by two years, coinciding with that of EWS and LIG," he said.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp