Kochi builders foresee correction upto 15% in prices

From ET Realty

KOCHI: The builders in the state are of the view that the slew of industry-friendly measures announced by union finance minister Arun Jaitley would help them build cheaper housing projects next financial year.

“This is for the first time in 15 years that a finance minister spent over five minutes to talk about the housing industry . The measures like 100 per cent deduction in profits in housing projects for flats up to 30 sq metres in four metros and 60 sq metres in other cities are welcome.Though only projects completed before March 2019 will benefit, this will result in price correction. Now, it is the responsibility of the state government to speed up the certification procedures for budget flat projects,” said S N Raghuchandran Nair, vice president, Confederation of Real Estate Developers’ Associations of India (Credai)-Kerala. KV Abdul Azeez, chairman and managing director of Skyline Builders said he expects a price correction for apartment projects by at least 15 per cent.

“The union government has realised that housing projects for poor and lower middle class can be introduced only with the help of private builders. The Credai had been requesting waiver of income tax and service tax imposed on the builders and property purchasers for the past many years,” he said.

The builders are not clear whether the relaxation for builders is based on carpet or built up or super built up. “If it’s carpet area, then builders will be able to offer well designed 2BHK with around 850 sq ft built-up area at an affordable price, which would be at least 15 per cent less than the current pricing,” Azeez said, adding that over 80 per cent of the homeless in the state are lower middle class families.

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