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Haryana sees two-fold rise in realty projects in small cities
The Tribune  |  October 14, 2019

Vijay C Roy Chandigarh

Call it rising awareness among buyers or increased demand for housing, the number of RERA-registered projects, especially in tier-II and tier-III cities (except Gurugram) of Haryana, has witnessed over two-fold increase in the past six months. Fuelled by more affordable housing projects, the number of projects has gone up to 309 from 148.

 

According to real estate consultants, there is a paradigm shift in the approach towards residential real estate as many developers are now moving towards smaller cities such as Jhajjar, Jind, Mewat, Palwal and Rewari, which are much more affordable than Gurugram.

 

“In terms of overall projects registered with RERA, Gururgam has more number of projects as compared to all real estate projects put together across the state. However, fuelled by affordable housing projects, we have witnessed a two-fold increase in the registration from 148 projects to 309 housing projects in the past six months,” said Rajan Gupta, chairman, HRERA, Panchkula.

 

According to the developers, there is a demand of affordable housing in many small cities of the state. Further, with RERA becoming tough on erring builders, many developers in the affordable housing category are registering their projects.

 

The biggest challenge for affordable housing is the price of land and since it is too costly in Gurugram, the developers are eyeing smaller cities.

 

The major cities where real estate projects are coming up include Sonepat, Rohtak, Rewari, Palwal, Mewat, Kurukshetra, Jhajjar, Jind and Faridabad among others.

 

According to the Economic Survey of Haryana 2018-19, construction industry started improving in FY18 and recorded a growth of only 5.3% in FY19. Due to this, many developers have already registered their projects or are in the process of registration.

 

Haryana has two benches of Real Estate Regulatory Authority — one at Gurugram and another at Panchkula. Gurugram, which falls under the National Capital Region, comes under Gurugram bench and has a lion’s share of RERA-registered real estate projects numbering 346. The HRERA-Panchkula, which covers all districts of the state, except Gurugram, has 309 projects registered with it. So, Gurugram is leading the state in real estate development.

 

The Real Estate (Regulation and Development) Act, 2016 and the Haryana Real Estate (Regulation and Development) Rules 2017 make it mandatory for the incomplete projects to be registered with the state realty regulatory authority.

 

The developers said since the government has raised the limit of deduction on home loan interest to Rs 3.5 lakh from Rs 2 lakh earlier, in this year's Budget, it has fuelled the demand. This will be applicable for loans sanctioned during this financial year and homes priced up to Rs 45 lakh.

 

However, they complained that the GST Council recently took a decision that affordable housing be taxed at the rate of 1%. “The impact of this decision is that the GST rate is either unviable for builders or they would try and pass it on to the homebuyer,“ he said.