Realtors want Stamp Duty on affordable housing to be slashed in Ahmedabad

Realtors in Ahmedabad on Friday urged the state government to reduce Stamp Duty on affordable housing in order to spur demand and come out with a policy on affordable housing. A top realtor said the sector has been facing a slowdown for almost six years now and so is in dire need of booster doses. However, the government said that players need to be ready to face teething troubles when reforms are being implemented.

Jaxay Shah, the president of Confederation of Real Estate Developers of India (CREDAI), in his speech during the inauguration of 13th GIHED CREDAI Property Show in Ahmedabad, said that 2013 onwards, the sector is facing a slowdown.

"We had three years of slowdown, demonetisation, Real Estate Regulation Act (RERA), Goods and Service Tax (GST), changes in GDCR (General Development Control Regulations) and new regulation regarding fire safety. This has caused disruption in the industry. Those who conduct business in such a situation should be lauded," said Shah. He urged Chief Minister Vijay Rupani to slash Stamp Duty on affordable housing. "We have ample experience that whenever Stamp Duty has been reduced revenue has increased by 20-30 per cent. The government should also announce a policy for affordable housing," said Shah.

Chief Minister Vijay Rupani commented that it was businesses who sought GST and online permissions and so it would be unfair on their part to complain when these are being implemented. "Do not put the blame of your slowdown on the government," said Rupani adding that the government will soon simplify GDCR and make it concise. "Only dishonest businessmen are afraid of RERA. It has strengthened rights of customers," said Rupani.

State Energy Minister Saurabh Patel said that the delay in giving permission for NA was a major bottleneck, which has been removed now. This will expedite projects bringing benefits for realtors. Patel justified higher Stamp Duty saying that it is used to create physical infrastructure, which shoots up prices of housing projects, benefiting realtors.

"RERA has been a win-win for buyers and realtors. It has made things clear for the buyer, which will eventually benefit builders. The rate at which pending Town Planning (TP) schemes are being given nods is unprecedented," he said.

TOUGH TIMES

Jaxay Shah, the president of Confederation of Real Estate Developers of India (CREDAI), in his speech during the inauguration of 13th GIHED CREDAI Property Show in Ahmedabad, said that 2013 onwards, the sector is facing a slowdown.