Hyderabad: Big sops to save realty on the cards

Hyderabad: There's good news for the reality sector. The Telangana government is likely to announce a few sops to give a boost to the sector soon. The sops, sources say, will help in attracting huge investments notwithstanding the corona pandemic.

It may be mentioned here that the government had already announced relief to this sector in payment of development, betterment and capitalization charges in instalments till March next year.

The projects which were to be completed by July were also given extension till March 2021. The agencies poured out their woes before the government that the works came to a grinding halt after the migrant workers had left to their native places. Severe shortage of construction material was also one of the main reasons for the delay in completion of many projects.

Official sources said the Municipal Administration and Urban Development, Revenue and Stamps and Registration departments were analysing the current trends in the realty sector in the state, particularly in Greater Hyderabad, which contributes to more than 70 per cent of total revenues generated from property registrations.

According to senior officials, "The challenges faced by the realty industry are under study and the government is considering every grievance of the construction agencies. The enforcement of RERA (Real Estate Regulatory Authority) guidelines framed by the Union government was also a big challenge before the Realtors in taking up the new projects ," a senior official said.

In view of the deepening crisis, the government has already put the proposal to increase the market value of the lands and the increase of stamp duty in cold storage. The major demand from the realtors was to reduce betterment and development charges which ultimately help to reduce the cost of properties and people will afford to buy them.

It is expected that the government will announce some incentives to realty industry in August after holding a high level meeting by Chief Minister K Chandrasekhar Rao with the industry leaders. The issue of reducing tax burden on the purchase of cement and steel which are the main components in the construction industry is also under consideration.