CREDAI, the apex confederation for real estate developers, has called on its members to consider reducing property prices in order to facilitate sales of their unsold inventories. Mr. Lalit Kumar Jain, the national head of CREDAI, stated that developers are looking at the feasibility of selling off unsold properties at more competitive rates. Recently, Finance Minister P Chidambaram highlighted this issue and urged developers to take notice of the substantial stock of unsold real estate.
During a governing council meeting held in Kochi, CREDAI deliberated on the recommendation made by the finance minister concerning the abundance of unsold properties. Following this meeting, the governing council has come to a consensus to explore ways to sell the maximum quantity of real estate through price reductions.
Interestingly, CREDAI had previously resisted the notion of divesting inventory at discounted rates, citing concerns that such a strategy could lead to significant financial losses for realtors given their considerable investments in these residential projects.
In a bid to address the financial challenges faced by developers and revitalize the much-needed real estate sector, CREDAI has continued its dialogue with the finance ministry. Mr. Jain articulated that rejuvenating the real estate landscape is critical for stimulating the sluggish Indian economy. He shared the confederation's optimistic view that the ministry regards their proposals favorably, reflecting confidence in potential supportive measures.
Among the essential suggestions put forth by CREDAI is the implementation of a single window system for clearances, which would greatly enhance the efficiency of the construction process. Additionally, they propose a reduction in interest rates by banks, aiming to facilitate the development of affordable and mass housing projects. Furthermore, CREDAI has outlined the necessity for a thorough real estate regulator, along with calls for tax exemptions to strengthen the sector's foundation.