Dear Members,
Greetings from Team CREDAI Bengaluru !
After last month's successful Realty Expo show at Palace Grounds which saw a record 9300+ footfalls and 65 expo bookings, Your expo Committee is now pleased to announce the International Realty Expo June 2011 at Dubai & London respectively.
Dubai Venue:
World Trade Centre
Dates: 16th,17th,18th June 2011 (Thursday/Friday/Saturday)
Time : 11 am to 8 pm
London Venue:
Excel Centre
Dates: 24th,25th,26th June 2011 (Friday/Saturday/Sunday)
Time : 11 am to 7 pm
The event is organised by Sumansa Events, a reputed and well known event organiser based in Dubai.
The attached brochure gives you all the details of these prestigious events. Please avail Special Price, exclusively offered to our Members.
Stands are limited and will be allotted by draw of lots.
Please send your intention to participate by return email to:
Ms Sugandha Singh
Relationship Manager - Sumansa Events
M:+971 50 192 0364 , +91 991 647 2702
Sugandha@IndianPropertyShow.com
www.exhibitors.indianpropertyshow.com
www.ips-london.com
We look forward to your support in making these twin events a grand success!
Thanks and Regards,
Sincerely,
S Faisal Rizvi
Jt. Secretary & Chairman Expo Committee
CREDAI Bengaluru
&
Anil Nayak
C E O
CREDAI - BENGALURU
# 607/608, 6th Floor, Barton Centre, 84, M.G. Road, Bangalore 560 001
D +91 80 2559 1336 / F +91 80 3052 1481 / M +91 99645 91155
ceo@credaibengaluru.com www.credaibengaluru.com
Sunday, May 29, 2011
Tuesday, February 15, 2011
SOUTHCON 2011 – WORKING TOGETHER FOR REAL ESTATE SUCCESS
SOUTHCON 2011 – WORKING TOGETHER FOR REAL ESTATE SUCCESS
February 2011 was a landmark month for CREDAI Karnataka, as we played host to SOUTHCON 2011, South India’s first real estate development conference on 4th and 5th February in Bangalore. As Mr. Sushil Mantri, President CREDAI Karnataka put it, the Indian real estate sector is one of the key drivers of economic growth and is poised for unprecedented growth and development today and at this critical juncture, it is important for developers to come together and share ideas and best practices and discuss key issues facing the industry. SOUTHCON 2011 was our first attempt at providing a regional platform for constructive communication.
The conference saw stalwarts from the industry address challenges, share best practices and recommend the conceptualisation and implementation of several schemes in association with the central and state governments to address key issues.
As the conference progressed, shortage of skilled labour was recognized as being the most critical issue affecting the sector today. SOUTHCON 2011 emphasised the need for effective training programs for construction workers as well as the need to work at a national level to bring recognition and a sense of identity for the worker community that is largely migrant. CREDAI has already initiated some strategies to address this issue, for example CREDAI is in talks with the UID program to enrol construction workers in the same. Also, CREDAI has an agreement with the National Skill Development Corporation to train construction workers in Pune which can be availed of by CREDAI members in other states as well. Panelists strongly urged CREDAI to work with the government to utilise the labour cess paid in every state for the benefit and training of construction workers. It was also recommended that CREDAI work closely with the central government to channelize some funds from the National Rural Employment Guarantee Scheme for the real estate sector which would guarantee workers a basic minimum wage.
Panelists from the four Southern states discussed the various approval and sanction processes in each state and the work done by the local CREDAI chapters to eliminate unnecessary delays, and improve efficiency of day to day operations. SOUTHCON 2011 also emphasised the need for developers to adopt modern technology and products already available in Western countries. Speakers at SOUTCON 2011 also addressed the concerns of SMEs by emphasising efficient back end processes such as ERP systems, effective cash flow management strategies, and marketing strategies which are key factors in ensuring project success and creating a positive image for the company as well as the sector at large.
SOUTHCON 2011 was a phenomenal success with participation of over 650 delegates from Karnataka, Andhra Pradesh, Kerala and Tamil Nadu. SOUTHCON 2011 – A ‘Working Together’ conference was successful in building a momentum that can only benefit the industry and economy as a whole. The best practices shared by member states and recommendations made by panelists will be taken up by CREDAI to not just help members improve efficiencies but also help streamline procedures by working closely with state and central governments.
February 2011 was a landmark month for CREDAI Karnataka, as we played host to SOUTHCON 2011, South India’s first real estate development conference on 4th and 5th February in Bangalore. As Mr. Sushil Mantri, President CREDAI Karnataka put it, the Indian real estate sector is one of the key drivers of economic growth and is poised for unprecedented growth and development today and at this critical juncture, it is important for developers to come together and share ideas and best practices and discuss key issues facing the industry. SOUTHCON 2011 was our first attempt at providing a regional platform for constructive communication.
The conference saw stalwarts from the industry address challenges, share best practices and recommend the conceptualisation and implementation of several schemes in association with the central and state governments to address key issues.
As the conference progressed, shortage of skilled labour was recognized as being the most critical issue affecting the sector today. SOUTHCON 2011 emphasised the need for effective training programs for construction workers as well as the need to work at a national level to bring recognition and a sense of identity for the worker community that is largely migrant. CREDAI has already initiated some strategies to address this issue, for example CREDAI is in talks with the UID program to enrol construction workers in the same. Also, CREDAI has an agreement with the National Skill Development Corporation to train construction workers in Pune which can be availed of by CREDAI members in other states as well. Panelists strongly urged CREDAI to work with the government to utilise the labour cess paid in every state for the benefit and training of construction workers. It was also recommended that CREDAI work closely with the central government to channelize some funds from the National Rural Employment Guarantee Scheme for the real estate sector which would guarantee workers a basic minimum wage.
Panelists from the four Southern states discussed the various approval and sanction processes in each state and the work done by the local CREDAI chapters to eliminate unnecessary delays, and improve efficiency of day to day operations. SOUTHCON 2011 also emphasised the need for developers to adopt modern technology and products already available in Western countries. Speakers at SOUTCON 2011 also addressed the concerns of SMEs by emphasising efficient back end processes such as ERP systems, effective cash flow management strategies, and marketing strategies which are key factors in ensuring project success and creating a positive image for the company as well as the sector at large.
SOUTHCON 2011 was a phenomenal success with participation of over 650 delegates from Karnataka, Andhra Pradesh, Kerala and Tamil Nadu. SOUTHCON 2011 – A ‘Working Together’ conference was successful in building a momentum that can only benefit the industry and economy as a whole. The best practices shared by member states and recommendations made by panelists will be taken up by CREDAI to not just help members improve efficiencies but also help streamline procedures by working closely with state and central governments.
Monday, January 3, 2011
SOUTHCON - 2011 : South India's biggest Realty Convention for Realty Developers
CREDAI - Karnataka is hosting 'SOUTHCON -- 2011' , South India's biggest Realty Convention along with prominent Realty Developers of Karnataka, Andhra Pradesh, Tamilnadu & Kerala on 4th & 5th February 2011 at Hotel Lalit Ashok, Bangalore.
Participation: For CREDAI Members Rs.1000/- & For NonMembers Rs.1500/-
(Non-Residential)
The detailed brochures will be sent to all the members, shortly.
Details of Hotel Accommodation provided in the brochure.
For further clarifications:
Mail to southcon@credaikarnataka.com or ceo@credaikarnataka.com
or Contact: Anil Nayak , CEO - CREDAI - Karnataka
on his Cell # 9845442250.
Participation: For CREDAI Members Rs.1000/- & For NonMembers Rs.1500/-
(Non-Residential)
The detailed brochures will be sent to all the members, shortly.
Details of Hotel Accommodation provided in the brochure.
For further clarifications:
Mail to southcon@credaikarnataka.com or ceo@credaikarnataka.com
or Contact: Anil Nayak , CEO - CREDAI - Karnataka
on his Cell # 9845442250.
Saturday, December 18, 2010
NATCON 2010 : Concrete agenda for mass housing
Concrete agenda for mass housing
A VITAL PLATFORM
NATCON 2010 will be a vital platform to explore, understand and discuss the possibilities of implementing the most innovative strategies efficiently and contribute towards fast track growth of the sector.This would be an excellent opportunity for all stakeholders of the real estate sector to evaluate the present scenario and obtain workable solutions in this area to convert the dream of a home into reality. In an endeavour to ensure better delivery in terms of housing, townships and related real estate infrastructure, it is time to sit across the table and work with all stake holders who are a part of this process.
–Kumar Gera, Chairman, CREDAI
CREATE EFFECTIVE DELIVERY MECHANISMS
The whole objective of organising this NATCON is to find out and deliberate on how 'Housing for all' can be achieved. An effective delivery mechanism needs to be brought into being. We
felt that having the Finance Minister, Housing Minister, Urban Development Minister, four Chief Ministers on a single platform will enable the departments to work in sync. Unless there is total harmony they work at cross purposes and are not forming a defined policy.We thought whether it is possible to have a national housing policy, it will be possible to provide Homes for all. There are also micro issues, problems of land conversion, availability of funds, etc. The next generation is not happy with the way things are, traffic snarls, potholes, power shortage, water shortage, so how can we build an India with sound solutions to these infrastructure problems? CREDAI NATCON 2010 will create a 'brainstorming platform' to create Homes for All by Working Together.
–Santosh Rungta, President, CREDAI
ADDRESSING SPECIFIC ISSUES
NATCON tries to educate its members on various aspects of business and create awareness amongst policy makers about issues in Real Estate business; at Delhi to communicate with government. It is addressing issues of and by policy makers while also trying to envision the future urban growth story. Homes for all, is a subject dear to not only politicians but also developers. It enables a successful developer to connect with the masses and do large turnover.However, issues like planning norms, delay in approvals, low quality infrastructure, land costs, low FSI, high taxation on sale value makes accommodation 'only for few.' This NATCON will try to create an understanding between policy makers and developers. The future story of India is 'urban growth' and hence role of developer community is critical. Though we think it will take a long time for government to really realize it and act though it is aware of facts. Unless there is a serious effort of governments (state and centre) and technological advancement towards cost efficient construction it's difficult to realize the dream of home for all.
–Lalit Kumar Jain, Vice President, CREDAI
REFORMS ARE NECESSARY
Today there is disconnect between what the centre is saying,what the state is understanding and what the local bodies are implementing. Everybody needs to be on the same page but this is not yet happening, which is why housing for all remains a challenge.Volumes have to come. In 2008 we all launched affordable housing projects but without the government reforms they will not be viable. Reforms need to be on the ground.We came up to do rental housing but the local corporations have not adapted. One vision is required, one objective. At NATCON we are getting the Finance Minister, Housing Minister, Urban Development Minister, four Chief Ministers on a single platform to make this possible. The state associations - CREDAI Maharashtra,Gujarat, etc.will take things up with the centre.More focus will initially be on state and city level. We will have pilot projects with the centre and the states.We will then take up things forward at the state level to work towards proper implementation by local bodies.
–Dharmesh Jain, Vice President, CREDAI
VOLUMES ARE ESSENTIAL
What we are trying to address is that to ensure housing for all, the centre, state and local bodies need to work together. Compliance of local bodies is seen to be dismal. The central government wants to promote housing and the state government has MHADA schemes but at the local level things do not get clearance. Volumes are essential if we want to provide housing for all. If you look at any industry higher volumes have driven down prices. If from Rs. 32 a minute you are paying 32 paisa a minute for mobile usage it is due to volumes. There is a need for the government to have one vision, one objective at all levels and NATCON is a CREDAI initiative to kick start the process.
–Nainesh Shah, Hon. Secretary, CREDAI
A VITAL PLATFORM
NATCON 2010 will be a vital platform to explore, understand and discuss the possibilities of implementing the most innovative strategies efficiently and contribute towards fast track growth of the sector.This would be an excellent opportunity for all stakeholders of the real estate sector to evaluate the present scenario and obtain workable solutions in this area to convert the dream of a home into reality. In an endeavour to ensure better delivery in terms of housing, townships and related real estate infrastructure, it is time to sit across the table and work with all stake holders who are a part of this process.
–Kumar Gera, Chairman, CREDAI
CREATE EFFECTIVE DELIVERY MECHANISMS
The whole objective of organising this NATCON is to find out and deliberate on how 'Housing for all' can be achieved. An effective delivery mechanism needs to be brought into being. We
felt that having the Finance Minister, Housing Minister, Urban Development Minister, four Chief Ministers on a single platform will enable the departments to work in sync. Unless there is total harmony they work at cross purposes and are not forming a defined policy.We thought whether it is possible to have a national housing policy, it will be possible to provide Homes for all. There are also micro issues, problems of land conversion, availability of funds, etc. The next generation is not happy with the way things are, traffic snarls, potholes, power shortage, water shortage, so how can we build an India with sound solutions to these infrastructure problems? CREDAI NATCON 2010 will create a 'brainstorming platform' to create Homes for All by Working Together.
–Santosh Rungta, President, CREDAI
ADDRESSING SPECIFIC ISSUES
NATCON tries to educate its members on various aspects of business and create awareness amongst policy makers about issues in Real Estate business; at Delhi to communicate with government. It is addressing issues of and by policy makers while also trying to envision the future urban growth story. Homes for all, is a subject dear to not only politicians but also developers. It enables a successful developer to connect with the masses and do large turnover.However, issues like planning norms, delay in approvals, low quality infrastructure, land costs, low FSI, high taxation on sale value makes accommodation 'only for few.' This NATCON will try to create an understanding between policy makers and developers. The future story of India is 'urban growth' and hence role of developer community is critical. Though we think it will take a long time for government to really realize it and act though it is aware of facts. Unless there is a serious effort of governments (state and centre) and technological advancement towards cost efficient construction it's difficult to realize the dream of home for all.
–Lalit Kumar Jain, Vice President, CREDAI
REFORMS ARE NECESSARY
Today there is disconnect between what the centre is saying,what the state is understanding and what the local bodies are implementing. Everybody needs to be on the same page but this is not yet happening, which is why housing for all remains a challenge.Volumes have to come. In 2008 we all launched affordable housing projects but without the government reforms they will not be viable. Reforms need to be on the ground.We came up to do rental housing but the local corporations have not adapted. One vision is required, one objective. At NATCON we are getting the Finance Minister, Housing Minister, Urban Development Minister, four Chief Ministers on a single platform to make this possible. The state associations - CREDAI Maharashtra,Gujarat, etc.will take things up with the centre.More focus will initially be on state and city level. We will have pilot projects with the centre and the states.We will then take up things forward at the state level to work towards proper implementation by local bodies.
–Dharmesh Jain, Vice President, CREDAI
VOLUMES ARE ESSENTIAL
What we are trying to address is that to ensure housing for all, the centre, state and local bodies need to work together. Compliance of local bodies is seen to be dismal. The central government wants to promote housing and the state government has MHADA schemes but at the local level things do not get clearance. Volumes are essential if we want to provide housing for all. If you look at any industry higher volumes have driven down prices. If from Rs. 32 a minute you are paying 32 paisa a minute for mobile usage it is due to volumes. There is a need for the government to have one vision, one objective at all levels and NATCON is a CREDAI initiative to kick start the process.
–Nainesh Shah, Hon. Secretary, CREDAI
Tuesday, December 14, 2010
CREDAI - Karnataka
The Association was formed to strengthen and safeguard the interest of business groups involved in the activity of Development of Multi - Dwelling Residential and Commercial complexes. The territory of operation was hitherto unventured and the control systems not fully in place, though was on record. The idea was also mooted to safeguard the interest of common citizen, who ventures into the new concept of dwellings.
From being operative in one of the member's office, the association was now housed in a rented place. With the constant contribution from its members, the association now has a permanent office space in a prominent business area.
The growth, surely consolidated the formation of a representative body of developers and builders in the State of Karnataka.
On recent years Bangalore has been a phenomenal growth in demand for Apartments. With the IT sector in the South and East and now the International Airport in the North there is all-round development. A number of Developers have ventured into Bangalore from other cities. It is now essential to specify and put in place certain regulations and rules for the proper growth and conduct of the industry as well as to safeguard the interests of the beneficiary.
All leading developers of Bangalore are members of CREDAI and take active part in redressing all common causes. The elected members of CREDAI meet regularly to sort out vexing issues affecting the trade and also make representations at various Governmental Agencies.
The Confederation of Real Estate Developers' Associations of India (CREDAI) on 20th Sept 2010 announced the appointment of Sushil Mantri - Chairman & Managing Director of Mantri Developers, as the new president of CREDAI, Karnataka.
Speaking on this occasion, Mr Sushil Mantri said, "I am honoured to be elected as the president and given a chance to serve the body at this level. While a lot has been done in the past to make CREDAI Karnataka a credible & reliable entity, there is a lot more to do and through all my endeavours for this association I shall consistently strive to not only to match the past achievements, but also to broaden our scope of activity to take CREDAI forward, prepared to face new challenges."
Sushil Mantri -President
Other elected representatives are :
Nagraj Reddy - President Elect
Govindaraju - Vice President
Shankar Sastri - Secretary
Kamal Sagar - Treasurer
Faisal Rizvi - Jt. Secretary
CREDAI – KARNATAKA
# 607 & 608, 6th Floor, Barton Centre, M. G. Road, Bangalore – 560 001
Ph: +91.80.255901336 Fax: +91.80.3052 1481
Mail: ceo@credaikarnataka.com
Web: http://www.credaikarnataka.com/
CREDAI
C R E D A I
Confederation of Real Estate Developers’ Associations of India is the apex body for private Real Estate developers in India. CREDAI represents over 5,000 developers through 20 member associations across the country.
CREDAI links private real estate developers to the government and customers through numerous initiatives and activities. CREDAI’s success in bringing the majority of organised private real estate developers under a single umbrella is a potent force that promises the rapid development of the realty sector—one that knows itself as a major driver of India’s economic growth.
CREDAI events offer excellent visibility as well as networking opportunities among India's most exclusive club of real estate developers for your business.
CREDAI's ROLE:
Facilitate Events, workshops, round tables, discussion, and expert opinion. CREDAI’s foremost responsibility is to bring developers on the same platform and create opportunities for the real estate developer community to interact with other stakeholders in the industry, like government bodies, professionals and consultants. To this end, CREDAI organizes workshops, seminars, and round tables and a large annual real estate conference, NATCON. For consultations, expert opinions and comments on issues of concern, CREDAI engages lawyers, accountants and analysts from time to time. CREDAI also commissions studies when needed.
Promote Ethics, best practices, and professional practice. CREDAI supports its member developers in establishing a reputation as professional organizations. CREDAI’s Code of Conduct provides clear guidelines for developers to serve their customers in an ethical and transparent manner. Members strictly and voluntary follow the CREDAI Code of Conduct, giving the community transparency and professionalismThrough events, workshops and grievance redressal cells for consumers, CREDAI promotes best practices and efficient construction practices among developers.Through these support functions and through active public relations, CREDAI is dedicated to the cause of improving the image of the real estate developer in the eyes of customers, the government and the media.
Build Linkages, partnerships, and strength. CREDAI builds relationships between developers and the government through representations, debates and active participation in all meetings called by the government to take feedback from the industry. CREDAI believes in strength through partnership and has developed a Strong relationship with the government through sustained interactions with the Ministry of Urban Development, Ministry of Housing and Poverty Alleviation, the Planning Commission, Ministry of Environment and Forests, and others. CREDAI partners with the government to work on areas of common interest and specifically provides a balanced and integrated industry viewpoint on critical aspects like policy and regulation. CREDAI has strong relations with the media through a coordinated PR campaign. CREDAI’s strong linkages with other industry associations, professionals and consultants, as well as international organizations, bring extra benefits to CREDAI members.
Serve Information, advisory, and advocacy. CREDAI provides important services like raising issues relevant to developers in government and non-government forums, suggesting policy changes, making representations, and giving the developers a unified front.CREDAI acts as a single point of information for the developer community for the latest developments in the industry. CREDAI also helps members connect with experts who can offer specific advice.
Prosper Sustainable and forward-looking vision. CREDAI is committed to Indian real estate’s growth story. Despite the current economic slowdown, CREDAI is confident that real estate will prosper, backed by considerable domestic demand for homes, office spaces and retail facilities, among other infrastructure needs.
CREDAI works at a long-term and sustainable development of the real estate industry in India and specifically works on the contribution that private real estate developers can make to this success story.
ACHIEVENMENTS OF CREDAI:
CREDAI’s honour roll lists achievements in two broad categories—CREDAI influences and helps rationalize government policy, and it brings together developers to move towards transparency and better practices.
Shaping Policy:
With an impressive track record, CREDAI has evolved into an influential body that helps shape real estate policies for the nation.
The government regularly seeks consultation from CREDAI at several levels and instances. For instance, CREDAI is always invited for discussions before the budget and the organization presents its pre-budget memorandum every which year is taken into consideration by the Ministry of Finance. CREDAI provides a balanced and sensitive feedback from the private real estate industry for all policies under formulation.
Environmental Impact Assessment:
When the Ministry of Environment came out with a notification to enforce environment impact assessment compliance on real estate projects on September 14, 2006, CREDAI represented consistently to the government pointing out the drawbacks in the notification. The EIA Notification required that construction of new projects or activities or the expansion or modernization of existing projects entailing change in process or product mix (for activities listed in the schedule) shall need prior environmental clearance from the central government or the state level Environmental Impact Assessment Authority depending on the project.
Over the past few years, CREDAI has worked constantly to reduce the adverse impacts of the notification on real estate projects. CREDAI’s efforts have gone a long way in changing things for the better. The Ministry proposed an amendment to the notification in January 2009 and the draft for the same has been placed in the official gazette.
Service Tax on Residential Construction:
Owing to the ambiguity and confusion about whether service tax is applicable to the construction of residential complex (as defined under Section 65 {105} of Finance Act), real estate developers across the country were experiencing escalating transaction costs. Coupled with the lack of liquidity in the Indian market due to the credit crisis, this created a grim situation.
After sustained efforts of CREDAI, the government has issued notification no. 9/2009- Service Tax dated March 2009 that supercedes the notification of the Government of India, the Ministry of Finance Department of Revenue, No 4/2004- Service Tax, dated March 31, 2004.
The new notification exempts the taxable services specified in clause (105) of section 65 of the said Finance Act and provides relief to developers. The move also benefits buyers, who will not need to pay the additional service tax amount to the developer when he buys an apartment.
Service Tax on Commercial Rentals:
Another area to cheer for developers and customers alike has been the repeal of the levy of service tax on renting of immovable property for business or commerce. In April 2009, the Delhi High Court struck down the levy as unconstitutional as the renting of immovable property involved the rendering of no service. The levy had come into force in 2007 and saw massive protests across the country, with CREDAI relentlessly pushing for a rational decision.
The judgement has brought great relief to corporate organizations at this time, when several are facing problems lowered profits and liquidity.
Proposed Real Estate Regulation Bill:
CREDAI has actively advocated for the real estate regulation bill over the last year, on grounds that it will help introduce transparency to the real estate industry.
However, CREDAI has also made it clear that the regulatory body should be set up along the lines of SEBI or IRDA so that an extra layer of controls and licensing is not created for the industry, which is already suffering cost escalations and delays owing to the multiple approvals and permits required for real estate project. CREDAI has also suggested that the body should include urban planners, representatives from developers association and members of civil society, in addition to bureaucrats.
Special Residential Zones:
CREDAI has proposed the concept of Special Residential Zones or SRZs (along the lines of SEZs) as a solution to the affordable housing crisis.
Skill Development Initiative:
CREDAI took initiatives over the last year for a thorough interaction among the BoD members within NSDC. Four BoD meetings have already taken place and a number of changes have taken place and stress is being laid on public private partnership (PPP) model to achieve the skills development mission.
Urban Land Ceiling:
CREDAI worked for the abolishment of urban land ceiling and even the last remaining bastions of ULCRA have now abolished it.
Stamp Duty Rationalisation:
CREDAI suggested that the stamp duty be brought down and several state governments have brought down the duty
Real Estate Financing:
In 2000, CREDAI supported the introduction of the concept of REITS. The concept is now well accepted in India in the form of real estate mutual funds.
CREDAI representatives had met with the Chairman of the Indian Banking Association (IBA) over the lack of funds for the real estate projects. A fresh infusion of funds is needed for real estate developers to complete ongoing projects and get the industry back on track.
CREDAI has submitted a proposal addressing several issues, including the track record of developers, their fiscal practices and loan repaying capacity. CREDAI is pushing for provisions that allow term loans to be rescheduled as well as rollover of existing loans allowed for construction loans. Also, CREDAI has requested for margin money contribution by home loan buyers to remain at 15% instead of the present 30%.
CREDAI is also in talks with the government to accord priority status to housing sector and to help remove the disparity in risk weights so that real estate gets easier access to bank loans.
Other Policy Reforms:
CREDAI was instrumental in drafting the National Housing Policy in 1998. In 2007, seeing that the real estate scenario had changed to include retail, hospitality, sports complexes, convention centres and a lot more, CREDAI suggested that the National Housing Policy be redefined to become the National Real Estate Policy. This has taken the form of the National Housing and Habitat Policy
Reforms suggested by CREDAI in urban development (put forward in a workshop) have now become part of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), a Government of India initiative aimed at encouraging reforms and fast track planned development of identified cities.
CREDAI has also suggested that the states be given incentives to adopt the Urban Reforms Incentives Fund (URIF) and the Urban (ULF)
Other Suggestions to the Government:
Some other areas where CREDAI is actively engaged in dialogue with the government are:
¤ Encourage affordable housing
¤ Increase investment in housing construction, maybe through changed ECB and FDI
¤ Facilitate land availability
¤ Stimulate housing demand by permitting foreign ownership, giving incentives to buy homes
Source: http://www.credai.org/
CREDAI links private real estate developers to the government and customers through numerous initiatives and activities. CREDAI’s success in bringing the majority of organised private real estate developers under a single umbrella is a potent force that promises the rapid development of the realty sector—one that knows itself as a major driver of India’s economic growth.
CREDAI events offer excellent visibility as well as networking opportunities among India's most exclusive club of real estate developers for your business.
CREDAI's ROLE:
Facilitate Events, workshops, round tables, discussion, and expert opinion. CREDAI’s foremost responsibility is to bring developers on the same platform and create opportunities for the real estate developer community to interact with other stakeholders in the industry, like government bodies, professionals and consultants. To this end, CREDAI organizes workshops, seminars, and round tables and a large annual real estate conference, NATCON. For consultations, expert opinions and comments on issues of concern, CREDAI engages lawyers, accountants and analysts from time to time. CREDAI also commissions studies when needed.
Promote Ethics, best practices, and professional practice. CREDAI supports its member developers in establishing a reputation as professional organizations. CREDAI’s Code of Conduct provides clear guidelines for developers to serve their customers in an ethical and transparent manner. Members strictly and voluntary follow the CREDAI Code of Conduct, giving the community transparency and professionalismThrough events, workshops and grievance redressal cells for consumers, CREDAI promotes best practices and efficient construction practices among developers.Through these support functions and through active public relations, CREDAI is dedicated to the cause of improving the image of the real estate developer in the eyes of customers, the government and the media.
Build Linkages, partnerships, and strength. CREDAI builds relationships between developers and the government through representations, debates and active participation in all meetings called by the government to take feedback from the industry. CREDAI believes in strength through partnership and has developed a Strong relationship with the government through sustained interactions with the Ministry of Urban Development, Ministry of Housing and Poverty Alleviation, the Planning Commission, Ministry of Environment and Forests, and others. CREDAI partners with the government to work on areas of common interest and specifically provides a balanced and integrated industry viewpoint on critical aspects like policy and regulation. CREDAI has strong relations with the media through a coordinated PR campaign. CREDAI’s strong linkages with other industry associations, professionals and consultants, as well as international organizations, bring extra benefits to CREDAI members.
Serve Information, advisory, and advocacy. CREDAI provides important services like raising issues relevant to developers in government and non-government forums, suggesting policy changes, making representations, and giving the developers a unified front.CREDAI acts as a single point of information for the developer community for the latest developments in the industry. CREDAI also helps members connect with experts who can offer specific advice.
Prosper Sustainable and forward-looking vision. CREDAI is committed to Indian real estate’s growth story. Despite the current economic slowdown, CREDAI is confident that real estate will prosper, backed by considerable domestic demand for homes, office spaces and retail facilities, among other infrastructure needs.
CREDAI works at a long-term and sustainable development of the real estate industry in India and specifically works on the contribution that private real estate developers can make to this success story.
ACHIEVENMENTS OF CREDAI:
CREDAI’s honour roll lists achievements in two broad categories—CREDAI influences and helps rationalize government policy, and it brings together developers to move towards transparency and better practices.
Shaping Policy:
With an impressive track record, CREDAI has evolved into an influential body that helps shape real estate policies for the nation.
The government regularly seeks consultation from CREDAI at several levels and instances. For instance, CREDAI is always invited for discussions before the budget and the organization presents its pre-budget memorandum every which year is taken into consideration by the Ministry of Finance. CREDAI provides a balanced and sensitive feedback from the private real estate industry for all policies under formulation.
Environmental Impact Assessment:
When the Ministry of Environment came out with a notification to enforce environment impact assessment compliance on real estate projects on September 14, 2006, CREDAI represented consistently to the government pointing out the drawbacks in the notification. The EIA Notification required that construction of new projects or activities or the expansion or modernization of existing projects entailing change in process or product mix (for activities listed in the schedule) shall need prior environmental clearance from the central government or the state level Environmental Impact Assessment Authority depending on the project.
Over the past few years, CREDAI has worked constantly to reduce the adverse impacts of the notification on real estate projects. CREDAI’s efforts have gone a long way in changing things for the better. The Ministry proposed an amendment to the notification in January 2009 and the draft for the same has been placed in the official gazette.
Service Tax on Residential Construction:
Owing to the ambiguity and confusion about whether service tax is applicable to the construction of residential complex (as defined under Section 65 {105} of Finance Act), real estate developers across the country were experiencing escalating transaction costs. Coupled with the lack of liquidity in the Indian market due to the credit crisis, this created a grim situation.
After sustained efforts of CREDAI, the government has issued notification no. 9/2009- Service Tax dated March 2009 that supercedes the notification of the Government of India, the Ministry of Finance Department of Revenue, No 4/2004- Service Tax, dated March 31, 2004.
The new notification exempts the taxable services specified in clause (105) of section 65 of the said Finance Act and provides relief to developers. The move also benefits buyers, who will not need to pay the additional service tax amount to the developer when he buys an apartment.
Service Tax on Commercial Rentals:
Another area to cheer for developers and customers alike has been the repeal of the levy of service tax on renting of immovable property for business or commerce. In April 2009, the Delhi High Court struck down the levy as unconstitutional as the renting of immovable property involved the rendering of no service. The levy had come into force in 2007 and saw massive protests across the country, with CREDAI relentlessly pushing for a rational decision.
The judgement has brought great relief to corporate organizations at this time, when several are facing problems lowered profits and liquidity.
Proposed Real Estate Regulation Bill:
CREDAI has actively advocated for the real estate regulation bill over the last year, on grounds that it will help introduce transparency to the real estate industry.
However, CREDAI has also made it clear that the regulatory body should be set up along the lines of SEBI or IRDA so that an extra layer of controls and licensing is not created for the industry, which is already suffering cost escalations and delays owing to the multiple approvals and permits required for real estate project. CREDAI has also suggested that the body should include urban planners, representatives from developers association and members of civil society, in addition to bureaucrats.
Special Residential Zones:
CREDAI has proposed the concept of Special Residential Zones or SRZs (along the lines of SEZs) as a solution to the affordable housing crisis.
Skill Development Initiative:
CREDAI took initiatives over the last year for a thorough interaction among the BoD members within NSDC. Four BoD meetings have already taken place and a number of changes have taken place and stress is being laid on public private partnership (PPP) model to achieve the skills development mission.
Urban Land Ceiling:
CREDAI worked for the abolishment of urban land ceiling and even the last remaining bastions of ULCRA have now abolished it.
Stamp Duty Rationalisation:
CREDAI suggested that the stamp duty be brought down and several state governments have brought down the duty
Real Estate Financing:
In 2000, CREDAI supported the introduction of the concept of REITS. The concept is now well accepted in India in the form of real estate mutual funds.
CREDAI representatives had met with the Chairman of the Indian Banking Association (IBA) over the lack of funds for the real estate projects. A fresh infusion of funds is needed for real estate developers to complete ongoing projects and get the industry back on track.
CREDAI has submitted a proposal addressing several issues, including the track record of developers, their fiscal practices and loan repaying capacity. CREDAI is pushing for provisions that allow term loans to be rescheduled as well as rollover of existing loans allowed for construction loans. Also, CREDAI has requested for margin money contribution by home loan buyers to remain at 15% instead of the present 30%.
CREDAI is also in talks with the government to accord priority status to housing sector and to help remove the disparity in risk weights so that real estate gets easier access to bank loans.
Other Policy Reforms:
CREDAI was instrumental in drafting the National Housing Policy in 1998. In 2007, seeing that the real estate scenario had changed to include retail, hospitality, sports complexes, convention centres and a lot more, CREDAI suggested that the National Housing Policy be redefined to become the National Real Estate Policy. This has taken the form of the National Housing and Habitat Policy
Reforms suggested by CREDAI in urban development (put forward in a workshop) have now become part of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), a Government of India initiative aimed at encouraging reforms and fast track planned development of identified cities.
CREDAI has also suggested that the states be given incentives to adopt the Urban Reforms Incentives Fund (URIF) and the Urban (ULF)
Other Suggestions to the Government:
Some other areas where CREDAI is actively engaged in dialogue with the government are:
¤ Encourage affordable housing
¤ Increase investment in housing construction, maybe through changed ECB and FDI
¤ Facilitate land availability
¤ Stimulate housing demand by permitting foreign ownership, giving incentives to buy homes
Source: http://www.credai.org/
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