Stamp duty should be uniform

Updated: Dec 31 2006, 07:08am hrs
The domestic real estate market which is presently estimated at $16 billion will increase to about $18 billion by calendar 2007 and Assocham further estimates that by 2010, it will grow to $60 billion.

The investments that will flock in to the real estate sector will largely be from domestic industry and foreign investment through JVs with leading real estate promoters in India.

The growth of real estate business in India include high improved duty which is on an average 7-8% in the North, 10-12% in the West and about 7-9% in the South. Assocham has already written to various states including the urban development ministry to bring down the variable stamp duty at a level of 2% to make it uniform all over the country, so that India attracts investments evenly in its federal structure.

One window clearance is also called for to clear the real estate investments, as currently, multiple authorities are involved in the clearance for real estate investments and these also involve a large number of bureaucratic processes.

Opportunities in the real estate sector are immense and businessmen and investors would like to cash in on them and they have been rightly doing so. Real estate prices have gone up in view of its demand and the demand has spread up purely in view of rising income levels of a particular section of society. The need is for construction of low-cost houses to ensure that common man has access to housing and this will also add to the opportunities that currently are seen in the real estate sector.

The author is director, Assocham