With the current project finance position being tight and spiraling cost of real estate loans the real estate sector is indeed looking for a respite. The sector expects that the upcoming budget will liberalize the existing norm in foreign direct investment (FDI) norm. It also hopes that the existing rules governing external commercial borrowings are also eased much to the relief of the real estate sector. Leading real estate players opined that if individual taxpayers are offered some more interest subvention as well as a higher cap on interest deduction to the housing loans it will make buying more affordable. To bring down the cost of construction input costs need to be brought down. For this developers are suggesting a revision of excise and import duties on steel and cement.
While talking to TOI the president of Confederation of Real Estate Developers’ Association of India Mr. Satish Magar said that since more than six months the real estate sector is under pressure as input costs have been increasing at an unprecedented rate. Mr. Magar said that prices of steel and cement which are the two most vital commodities for construction have been increasing at the rate of 30 to 50 % since the last six months. This increase has greatly affected the prices of real estate properties.
While talking to TOI the president of Confederation of Real Estate Developers’ Association of India Mr. Satish Magar said that since more than six months the real estate sector is under pressure as input costs have been increasing at an unprecedented rate. Mr. Magar said that prices of steel and cement which are the two most vital commodities for construction have been increasing at the rate of 30 to 50 % since the last six months. This increase has greatly affected the prices of real estate properties.
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