Realty sector in Madhya Pradesh builds hopes on new govt to revive industry
The real estate sector of Bhopal is waiting for the formation of new government in the state so that it can go ahead with its demands for the industry’s revival.
The sector, still reeling under demonetization and GST aftershocks, expects from the new government a correction in collector guideline rates.
The builders are also expecting the government’s help in creating job opportunities in the city, preparing city’s master plan by international agencies to improve overall living and housing standards in the city and giving realtors opportunities to cater to the fresh demands.
The real estate market in Bhopal bats for a change believing that the new government would look with a changed view towards their problems.
Early this year when the prices hit rock bottom, builders were expecting some revival of the market. However, they are now saying that the demand was only in affordable housing sector and commercial space while big housing projects still await buyers.
There are 4,000 unsold properties in Bhopal in 300 complete or semi complete projects and thus builders are not announcing any new big projects in the city.
“The situation has gone worse because of lack of job opportunities, migration and increased burden of taxes,” said Manoj Singh Meek, spokesperson for CREDAI. “The affordable housing segment saw some revival and builders are modifying their projects to suit to the buyers’ demands,” Meek said, adding, there is demand for small commercial spaces in the market with people starting their own businesses in the absence of jobs.
The main demand of builders in the city is correction of collectors’ guideline rates. “The collector guideline rates are much higher than market rates,” said Chinarr Group director SunielMoolchandani, adding that a buyer has to pay 25% taxes.
“In PM housing scheme also, the government should ensure that the benefit is reaching to genuine people. The sector is looking at the government for help for its revival. It was assured that there would not be any stamp duty once GST comes into force. However, the stamp duty rate has been increased from 7.5% to 11.5%,” Moolchandani said.