REAL ESTATE VIBRATIONS:

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For the last around two quarters the booming real estate sector has been facing tremors of government policies as a result of which this sector has faced a sluggish growth. On top of it the RBI has once again recently announced increase in bank home loan interest rates consequent upon which the progress interalia, of real estate sector has been thrashed to the maximum as the actual users, who are supposed to be the driving factors of real estate market, have run away from the market deferring sine die their home requirement.

lower leHowever, to revive the real estate market, need of the hour is to make such a policy which may really be favorable to the actual users of vel, middle class and upper class. Some suggestions are, however, given below:-

1. Reduction in home loan interest rates for first time actual user. This should be strictly based on an affidavit followed by an enquiry.
2. No reduction in home loan interest rates for second home buyers
3. Full income tax rebate on interest amount to the first home buyers.
4. To control strictly the cost of various inputs such as cement, steel & bricks etc. so that the construction cost is reduced to the maximum to attract the lower and middle class actual buyers.
5. Financing problem of big builders be solved through Real Estate Investment Trust like autonomous body at reasonable rate of interest so that they can complete their projects as per stipulated time schedules.
6. While permitting CLU/environmental clearance and any other permission/license to the builders, concerned governments should impose mandatory conditions for construction of specific percentage of homes for EWS, LIG, MIG & HIG i.e. say in the ratio of 20%, 25%, 30%, and 25% respectively so that lower income group people may also join the main stream of the nation.
7. The regulating authorities may also consider to increase FAR which will provide more number of house in the sanctioned plan which will help in solving the housing problem to some extent.
8. Since more than 20 million houses may be required in the near future, the government concerned must be ready to augment the necessary infrastructure compatible with the urgent need of ever growing housing requirement so that inhabitation may not suffer from the basic requirements such as roads, water supply and transport facilities etc. etc.
9. Stress should be laid to develop infrastructure facilities on priority in Tier-II and Tier-III cities so that the pressure of Tier-I cities could be diverted to Tier-II & Tier-III cities on economic ground itself as the plots/ flats including industrial & commercial properties will be available at comparatively cheaper rates than Tier-I cities with similar facilities.
10. Government should provide special incentives or subsidised schemes to both builders as well as home/plot/commercial property buyers in Tier-II & Tier-III cities so that more and more people can opt for their future homes there.

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