Real Estate Developers seek PM’s intervention [May 2012]

Real estate developers in India have urged Prime Minister Manmohan Singh to put in place a mechanism to clear various roadblocks hindering the growth of the crucial sector. They have asked the PM to constitute a sub-group of the National Development Council to specifically address the problems faced by them.
Confederation of Real Estate Developers’ Associations of India (CREDAI), the apex body of the organised real estate developers across the country submitted a letter to the PM on the challenges and the way forward for the real estate sector of the country. They have also threatened to go on strike if the government failed to meet their demands.
CREDAI has brought to notice of the PM that arbitrary and non-consultative orders/delays of various central government departments like environment, defence, archaeology, aviation are affecting the real estate industry. The letter further stated the contribution of the real estate sector to the GDP, employment and general financial health of the country and listed out the impediments while suggesting reforms which would, if implemented, help in the growth outreach of the sector.
Soliciting for a window of audience with the PM, the letter detailed out the issues of concern related to housing and real estate sector and informed the PMO on the issues concerning the sector while highlighting the difficulties in terms of representations to various central agencies.
The letter by CREDAI has pointed out that issue like delays in approvals of real estate projects which taking upwards of 18 months escalates housing costs substantially.

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