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Saturday, Oct 19, 2019

Developers want prices revised, limit removed for affordable houses in Gurugram

While a house is classified as affordable in Haryana if it is priced less than 25 lakh, the norms fixed by the Central government have stipulated the price at Rs 40 lakh for metropolitan cities.

real-estate Updated: Sep 19, 2019 05:59 IST
HT Correspondent
HT Correspondent
Gurugram
Since 2014, the DTCP has issued licences for over 50 housing projects in this category and occupation certificates for three to four such projects have been given.
Since 2014, the DTCP has issued licences for over 50 housing projects in this category and occupation certificates for three to four such projects have been given.(HT FILE)
         

The decision of the government to double the area available for affordable housing in residential sectors has received a positive response from developers in the city. However, they also want the government to revise the price for such apartments, which was last fixed in 2013.

As per the Haryana government rules, the developers can sell these apartments at a fixed price of ₹4,000 per square feet. They also said that while 1% GST is charged for this, the government has done away with the input tax credit benefit they used to get earlier, which is hurting the business.

While a house is classified as affordable in Haryana if it is priced less than ₹25 lakh, the norms fixed by the Central government have stipulated the price at ₹40 lakh for metropolitan cities. The Central government had revised the price norms to boost the availability of loans for purchasing such houses in the non-premium category.

“The move to expand affordable housing will benefit homebuyers, as prices are within reach and the project will be completed in four years, as per the norm. We have already delivered one large project and more are in the offing,” said Pradeep Agarwal, founder and chairman, Signature Global Group, which operates only in the affordable sector.

Since 2014, the DTCP has issued licences for over 50 housing projects in this category and occupation certificates for three to four such projects have been given. “A number of such projects are in the completion stage and will be handed over to buyers,” said RS Bhath, district town planner.

Most of the developers, including Agarwal, said that since the profit margin is less in such projects, it is important that the price is revised as the cost of steel, cement, labour and other materials have increased significantly. “The increase in land availability will give us more room to operate. The pricing is transparent and allotment is also made under a watchful eye. If the price is revised, it would make it more viable for developers,” said Surinder Singh, director, Pivotal Infrastructure, another developer of affordable homes.

Apart from revision in price and consideration of GST, the developers opined that the creation of a single-window system in which the projects get automatic approval, if they adhere to norms, should also be created. “The single window system should be made for all kinds of licensing. Also, the government should do away with the limit for such housing as there is a great demand for such houses and artificial controls would not help much,” said Parveen Jain, vice chairman, National Real Estate Development Council, Haryana.

First Published: Sep 18, 2019 21:59 IST

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