Credai Seeks Sops As Home Sales Fall In Hyd
Urges TG govt to cut registration charges, allow installments for permission fees
(From left) Abhishek Kiran Gupta, CEO, CRE Matrix, V Rajashekar Reddy, president and Jagannath Rao, General Secretary, Credai Hyderabad, during the launch of the report, in Hyderabad on Tuesday
Hyderabad: The total value of homes sold in Hyderabad has dropped annually by nine per cent to Rs 30,924 crore and total units of residential properties sold has declined by 22 per cent to 16,644 units in the fourth quarter of calendar year 2024. For the real estate sector to recover from the impact of HYDRAA, Credai Hyderabad has urged the State government to consider short-term incentives for the builders and home buyers.
The Hyderabad Chapter of Confederation of Real Estate Developers Association of India (Credai) in collaboration with CRE Matrix, a real estate data analysis platform, released the Hyderabad Housing and Office Market Report Q4 CY24, here on Tuesday.
“Currently the permission fee, depending upon the area of the project, ranges from Rs 150 – 200 per sft. We have asked for payments in eight installments over a period of eight years. This request has been made for the new projects that are being launched in one year. This will encourage more builders to come out and launch more projects,” V Rajashekar Reddy, president, Credai Hyderabad told Bizz Buzz.
According to him, this relaxation in paying registration fee of a project in installments will lead to adequate cash flow in the hands of property developers. “When there is cash flow, bankers will come forward to support, there will also be increase in sales and timely payment of the permission fee,” he added.
Saying that developers are now paying the impact fee in installments, they have urged the government to include the permission fee too. The request has been submitted to the government last year in the month of August, he added.
According to the report, the primary sales performance in the Hyderabad market for the last quarter of CY24 showed a decline. The city witnessed a decline of nine per cent in value of residential units sold to Rs 30,924 crore in Q4 CY24 as compared Rs 33,966 crore in Q4 CY23. The sale of units has dropped by 22 per cent to 16,644 units between October to December period in 2024, as against 21,435 units in Q4, CY23.
The second long-standing demand that has been put forward the government is relaxation in property registration fee, on the lines of Maharashtra government. Reddy said, “As a short-term measure, the government can consider reducing the registration fee for six months. During this period, the number in registrations will increase which will be good collection for the government itself. As a long-term measure, relaxation in registration fee can be extended to women home buyers.”
