Move to revise land market value to jack up registration cost: CREDAI

Visakhapatnam The realty sector which is already hit hard due to increase in raw material prices, has asked the government to drop the move for upward revision of market price of land.

The real estate developers feel that if the State Government goes ahead with the proposal, it will lead to further increase in registration cost dampening the spirit of prospective buyers.

The realty sector, which provides employment to thousands of families and contributes substantially to the national kitty, has been hit hard by multiple problems and all stakeholders in this sector, especially builders, are finding it very difficult to carry on their activities. The government had positively responded to many of the problems in different sectors of economic activities, which were brought to its notice, by extending timely help and offering incentives and concessions. The realty sector which is beset with a slew issues, sincerely urges the government to come to its rescue and extend similar help to carry on its activities normally, said CREDAI-Visakhapatnam president, K.S.R.K Raju (Sai), immediate past chairman and joint secretary CREDAI-AP Peela Koteswara Rao and honorary secretary CREDAI-Visakhapatnam E. Ashok Kumar.

They told the media here on Friday that their main problem is the steep hike in prices of all materials used in the construction sector. Raju said that the price of cement per bag has almost doubled from Rs.225 to Rs.430 and that of steel has gone up by more than 60 per cent. Because of the pandemic, labour has migrated, leading to its shortage. Prices of other materials like pipes, tiles and electrical goods have also gone up.

In all the cost escalation per sq. ft. is nearly Rs.500. This would have an adverse impact on buyers and the realty sector as a whole, Raju said. The realty sector needs government help to overcome all the problems, he added.

The hike in market price of lands will also result in increase of registration charges and dampen the enthusiasm of buyers, he said.

Hike in price of construction materials, delay in extending clearances and hike in land value leading to increase in registration charges are the three main issues for which CREDAI has represented to the government for help, he said.

Koteswara Rao, who is also the convener of CREDAI-AP's sub-committee on RERA, said that CREDAI members have welcomed RERA enactment and its provisions, but during its implementation, builders, especially small and middle scale builders, had been facing problems. Introduction of an online method is okay, but there is delay in its implementation, he said. Timely and speedy clearances from departments would help builders to deliver completed units in time and there would be more demand.

Regarding high registration charges, Koteswara Rao pointed out that 90 percent of buyers will go for middle cost houses and a hike in these charges will naturally have an impact on sales. If the charges are reduced, there will be an increase in demand and the sales and realty sector will get a boost.

Honorary secretary Ashok Kumar pointed out to the enhanced cost of cement recently and requested the government to save the realty sector from the cement cartel.