CREDAI has started an online campaign Revive Real Estate Revive Economy, and addressed it to the Prime Minister. The campaign has a plea for reducing home loan interest to 5%.
By Varun Singh
An online petition has been started by CREDAI Action Committee. The apex body of developers has asked for reducing interest on home loan to be reduced to 5%.
The petition Revive Real Estate Revive Economy is addressed to the Prime Minister of the country.
Campaign states, the series of lockdowns necessitated by COVID have stalled the economy and the RBI itself has forecast a negative growth.
“It is in this context that we at CREDAI, the national body of real estate developers, have been drawing your attention on the need to revive real estate to revive the economy and thus positive GDP growth,” reads the petition.
Pointing out that real estate supports up to 250 industries and can help save the economy from the current lockdown crisis, the online campaign has generated close to 38,000 signatures from across the country.
“We request for an urgent intervention at the highest level in the government so that the industry is revived to rejuvenate the economy as a whole,” said Ajay Ashar, spokesperson of the MMR Action Committee of CREDAI MCHI.
The online petition has praised the PM Narendra Modi for giving a befitting response to Chinese aggression.
CREDAI has suggested the following steps for building the confidence of homebuyers
- Ensure that the benefits of repo rate cuts by RBI are passed on to the end consumer at all levels.
- Empower the home buyer with reduced, comfortable rate of interest of 5%. Or at least have the rate subsidised for low and mid-income groups for the next five years.
- Increase the limit of principal deduction on housing loan under Section 80C to Rs 2.5 Lakhs.
- Increase Interest deduction under Section 24 on housing loan for homebuyers to Rs. 10 lakhs.
- Scrap the capital gains tax for residential properties held for a period of longer than one year to allow them time to reinvest after serious thought.
- Change the definition of affordable housing to Rs 75 lakhs to allow GST of 1% as the current level of Rs 45 lakhs is too low in many cities due to the high cost of construction.
For developers the petition reads, “Sir, we are not asking for the moon nor are we seeking any waivers.”
- Allow us just one-time debt reconstruction for developers to help complete projects on hand, clear inventory without any pain.
- Ensure the Banks and NBFCs pass on the repo rate cut benefits to be passed on to realty developers, too.
- Grant MSME status and benefits for the Real Estate industry so that we developer community too can breathe. This will help improve consumer confidence in more than 300 ways – real estate developer consumes material from 300 industries and the houses is purchased by the people at large.
The real estate body is expecting that if these demands are met, they might sail through the tough times.