Sri Sreenivasa Constructions
Managing Partner V Krishna Reddy
with Real Estate Guru
(King Johnson Koyyada, 9030034591)
* Twenty percent mortgage..
This is the biggest problem.
* In spite of the OC provision,
why an additional mortgage?
* Basic development should be done
* It is better if the fees are reduced
Economic progress is possible only when the governments elected by the people consider welfare schemes and development as two eyes. The revenue for the government will increase significantly. As a result, more welfare schemes can be introduced. If the infrastructure is developed and the fees rationalised, the construction sector will make significant progress. 250 industries dependent on this are shining bright. In the end, the dream of owning a house can easily come true for the common man, said V. Krishna Reddy. Speaking to Real Estate Guru on the occasion of the launch of the Marquise project in Kokapet, he said that it took more than six decades for Hyderabad to reach this level. Excerpts from the interview:
It has been six decades since Hyderabad was formed as the capital of Andhra Pradesh. It took about 40 to 45 years to reach the present level. After 2004, the progress in Hyderabad realty started. Moreover, not only from AP, but there are people from other cities in the country working here. Some people are successfully running businesses and industries. Expatriates are also trying to settle in Hyderabad. So, in any way, in the coming days, Amaravati will not cause any loss to Hyderabad realty. Hyderabad will grow significantly.
Investors are looking at cities with immense growth opportunities. With Chandrababu Naidu as Chief Minister of Andhra Pradesh, land prices there are expected to rise because Amaravati is being developed as the political capital city and Vizag as the economic capital city. Presently, due to Amaravati being in its initial stages, it will take about 40 to 50 years for it to join the ranks of Hyderabad. If the focus remains on development, as it has been in recent years, it is achievable. In the past decade, good infrastructure has been developed not only in Hyderabad but also in cities like Warangal, Karimnagar, Nizamabad, and Khammam. Therefore, wherever growth is witnessed, the real estate market thrives, and attention must be paid to that.
Investors in Telangana have been in a wait-and-watch mode since last December. Consequently, developers are reducing prices by 25 to 30 percent. Now that the elections are over, Telangana Chief Minister Revanth Reddy has indicated a focus on governance. Recently, it was revealed that Coca-Cola is setting up a new factory in Peddapalli. With the completion of elections, Telangana gradually attracts both domestic and foreign investors. It’s clear that in the next three months, many investors will enter the market.
Focus on infrastructure…
The Telangana government must focus on developing basic amenities. Electricity, clean water, and proper sanitation should be provided 24 hours a day. More flyovers, underpasses, skyways, and radial roads should be developed in Hyderabad, unlike in Bengaluru. If the government encourages real estate development and takes decisions in favour of real estate only, then new projects will start. As a result, the government will earn revenue, and the lives of the people will improve.
The burden of fees should be reduced…
In a city like Bangalore, fees are collected at the rate of fifty rupees per square feet on high-rise buildings. But we charge high fees for skyscrapers. 35 per square feet for Kokapet Development and Rs. 35 per square feet for slip roads. Rs. 50, Rs. 100 per square feet in the name of others. If the total is calculated like this, Rs 300 is being paid per square feet. If these fees are rationalised, the market will respond positively. As the revenue increased significantly when the Centre reduced the income tax rules, the fees on the structures should be reduced and collected through deferred methods. Only then do developers focus on project development. Moreover, new projects will be launched. GST, stamp duty, registration, etc. will increase the government’s revenue.
Another major problem facing the real estate sector is mortgages on built-up areas. According to GO No. 86.. Local organisations are mortgaging ten percent of the built-up area. Another ten percent of the built-up area has to be put under fee deferment. Moreover, banks do not grant loans on this 20 percent. If 20 percent of the 65 percent share that comes to the builders in the development projects is put under mortgage, then the builders will not be able to recover their investment by the time the project is completed. Hence, the removal of this mortgage provision will be beneficial for construction companies. According to the rules, the occupancy certificate is still there for the developers to work on, so the government should recognise that a 10 percent mortgage is not required.*
