Gujarat Real Estate Developers Demand Industry Status For The Sector

Published: September 5, 2009 at 11:00 AM | Author: Administrator
News Source: September 4, 2009 - Indian Realty News

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For once, developers in the state are pressing for an industry status for realty sector. Issues like financial support from banks, transparency in functioning of revenue department and reforms in archaic concepts of development control regulations are now teething problems for the sector. Realtor and president of Confederation of Real Estate Developers’ Association of India Jaxay Shah says, "Realty industry is the only sector that is never given a deemed Non Agricultural (NA) permission status in Gujarat, while rest of the sectors - be it chemical, heavy industries and even small-scale industries are considered for it. This is hindering us from growing into an organized sector."

Another realtor Rushabh Patel says that the emphasis on horizontal development should be curtailed to a greater extent. “Our concern is the growing middle class segment and their affordability for a home. Increased jantri rates and restriction on floor space index (FSI) are hampering their dream. Many town planning schemes dished out in the recent years need to take a reality check. I am sure that a large part of these schemes are yet to see any development.” Realtors have even pressed for reforms in the upcoming township policy. “The condition that developers holding 100 acres or more can construct townships is restricting many small players. Besides, a township coming up 20 km away from the central business district will make life costlier for those living in budget homes in townships, the travel costs for instance,” says Shah.