Government finds methods to cut home prices

The rising property prices has made government anxious and the Union housing ministry has been consulting the private realty developers and builders to look for a strategy that could reduce the time which is taken for approval of real estate projects. It can help to bring down price of house. To streamline procedure for approval of real estate projects a committee has been set up by the ministry to suggest ways. If the time of approval is reduced to only 6-8 weeks it is expected that a consumer will end up paying 25 to 40 per cent less due to reduction in time of granting approval. 

To bridge the huge accommodation deficit in our country mainly for the low income groups and economically weaker sections, the ministry wants to develop for the realty projects a fast track approval. It will be executed by the private developers. Promotion of affordable housing has always been done by the ministry. The housing shortage stands at 27 million units according to latest report. 

This is at least for half of the people who cannot afford to own a house of their own. The ministry is expecting that once they get approval for time cut, the builders and developers would pass on the cost reduced for construction of houses to consumers. For streaming project approvals process the ministry is asking for suggestions from public and property developers regarding type of reform.