With the rising cost of
construction,affordability of houses should be the prime concern of the
government.However,the basic issue remains unaddressed in the Union Budget for
2011-12,Presented in the Lok Sabha on Monday,said Abdul
Azeez,Chairman,Confederation of Real Estate Developers Associations of India
Union Finance Minister Pranab Mukherjee did extend the
one per cent concession on interest rates for housing loans uo to Rs.15
lakh,from the present Rs.10 lakh ceiling,for buying houses that cost up to Rs
25 lakh, above the present limit of Rs.20 lakh.However ,thisdid not slove the
problem of the common man."it is only a cosmetic touch," he said.
"It has not enhanced the
buying power of the people .it has not helped create a demand for a dwelling at
more affordable rates to those who do not have one," he said.
The price of steel went up 15 per
cent even before the budget,M.D jairaj,president,kerala Builder's
With no let up in the increase in
land prices in the state,construction costs are going up,Properties meeting
people's aspirations are slipping away from their reach.It affects the industry
if the customers are unhappy because a commodity is unavilable in the quantity
and quality they require,he said.
Having a dwelling is a basic need
of the people and the goverment should be providing for it or at least supporting
those in the private sector who will be able to build houses it afferdable
costs Mr.Jairaj said.
Mr.Azeez said that with the election process
on,people were looking for a prodevelopment goverment.
Though prices were slightly
higher than what it was a few months ago after stagnating for about three
years,it was the best time for buying a
house.It would take some time for builders to raise the prices as enough stocks
The builders would need to increase their cash
flow for raising the prices of the next projects.
He said that at least for the next two years,
the housing demand would be met by the available numbers. There was no shortage of housing that various industry
segments might be looking for aspart of setting up their centers here, he