Confederation of Real Estate Developers Association of India (CREDAI) Bengaluru has presented a memorandum to the government to implement several reforms that would help streamline the real estate development process in the Bengaluru region. These amendments aim to address the challenges faced by developers and improve the overall efficiency and sustainability of the real estate sector.
The key areas of focus include providing clarity on the transferable development rights (TDR) issue that has been long pending and simplifying the regulations. The CREDAI Bengaluru opines that it is a very cumbersome and tedious process.
It said that by simplifying this and ensuring that the development rights certificate (DRC) is undertaken at the prevailing guidance value, it would bring in confidence, as the planning authorities can acquire land for infrastructural projects and the landowner giving up the land will not be disadvantaged when the TDR certificate is issued.
CREDAI Bengaluru President Amar Mysore recently expressed optimism about the growth of Bengaluru’s real estate market during a media interaction. He mentioned that CREDAI Bengaluru is collaborating closely with the state government to tackle various challenges in the sector and create a more favourable environment for real estate development.
He said that streamlining plan approvals is another priority, with measures such as implementing a single window system for obtaining No Objection Certificates (NOCs), reducing approval fees that are currently linked to guideline value, and standardising zoning regulations across the various planning authorities to bring in synergy and ease of doing business.
“To improve efficiency, CREDAI Bengaluru proposed eliminating unnecessary procedures like commencement certificates, standardising buffer zones, especially for a city that has moved away from an agrarian economy to a tech capital and incorporating new uniform zonal regulations for the entire Bengaluru Metropolitan Region,’’ he said.
CREDAI Bengaluru has recommended reducing stamp duty rates for Joint Development Agreements and Mortgage of Title Deeds, which were recently increased on an ad valorem basis without a cap. They also suggested introducing a staggered payment scheme for remitting labour cess, considering that construction occurs over an extended period.
“The government can foster a more conducive environment for sustainable and efficient real estate development in Bengaluru by addressing these issues. This will not only benefit developers but also contribute to the overall growth and development of the city,’’ he said.
He said that residential project launches and sales in city are expected to increase by 10-15% in 2024 compared to the previous year and the market is poised for expansion across various micro-markets.
“Emerging micro markets like Bagaluru and Varthur/Gunjur have witnessed substantial price appreciation and increased new supply with Bagaluru experiencing a nearly 70 per cent surge in residential property prices over the past five years with the bulk of the new supply priced between Rs 40 lakh and Rs 1.5 crore. Sarjapur, another emerging micro market, has also seen about a 50 per cent price jump in recent years,’’ he said.
