TN State govt should offer sops to save realty sector from slump: Credai

Highlighting that real estate sector was facing a slowdown over the past couple of years, Ajith Kumar Chordia, president, Confederation of Real Estate Developers Association of India (CREDAI), Tamil Nadu, said the State government should come up with incentives to pull the sector out of slump. Speaking at the installation ceremony of new CREDAI Madurai office-bearers here on Saturday, Mr. Chordia said though the sector was facing a rough weather, the silver lining was the Centre’s Pradhan Mantri Awas Yojana (PMAY) that aimed at providing housing for all. He said through the scheme, the Union government was making loans easily available, apart from providing tax exemptions. “The State government should also come up with similar measures like reduction in stamp duty, at least for a limited period, so that people will be enthused to buy houses,” he said. Stating that demonetisation, followed by introduction of Goods and Services Tax (GST), has been a dampener for the economy, Mr. Chordia, however, pointed out that many foreign financial institutions had predicted that the situation would change in 2018-19 with a higher growth rate. He said the players in the sector could use the present ‘lull period’ to make their businesses ‘lean, mean and fit’ by adopting the best in terms of technology and becoming more efficient. He also appealed to CREDAI members to not just rely on building residential properties, but also develop warehouses, schools and hospital buildings, for which there was an increase in demand. S. Seetharaman, outgoing president of CREDAI Madurai, and R. Ilankovan, outgoing secretary, said real estate developers in Madurai were facing tremendous challenges in terms of restrictions and demand, unlike in cities like Chennai and Coimbatore. T. Pandiarajan, president, K.R. Meenakshi Sundaram, vice-president, S.R. Muthuvijayan, secretary, and other officer-bearers of CREDAI Madurai took charge. Source: The Hindu