Developers may strike if realty woes persist: CREDAI

MUMBAI: Concerned over the problems faced by realtors and home buyers, Confederation of Real Estate Developers' Association of India ( CREDAI) said it may go on a nationwide developers strike to sensitise the policy makers if realty woes persist.

The association has also decided to send an 'SOS' to the Prime Minister Manmohan Singh and seek an appointment to meet him to discuss the need for speedy reforms in the sector.

"In our next governing council body meeting, we will decide to call for a day's strike to draw the government's attention to the problems being faced by the industry. We may have to go on an indefinite strike if the problems affecting the developers and home buyers are not addressed," CREDAI national president Lalit Kumar Jain said in a statement issued here.

Clarifying that the developer community was not against any government or a political party, Jain said, "Our aim is to get all the problems resolved, so that developers can play an effective role in the housing for all mission planned by the government."

The sector contributes close to 7 per cent (or around Rs 140,000 crore) to the GDP, he said, adding, "But we are still facing suffocation due to various administrative delays on various counts. All our appeals for speedy action are falling on deaf ears."

As per the current projections, there is a shortage of 270 lakh dwellings and by 2025, shelter will be of a matter of a huge concern for nearly 50 crore people, he said.

"Instead of facilitating the industry to function without any hurdles, the government is enforcing policies like compulsory reservation of 20 per cent of the developed property for affordable housing. It is unfair to burden the majority 80 per cent buyers with additional cost," Jain said.

Real estate is a capital and labour-intensive industry which supports over 200 other industries like steel, cement and other construction material, he said, adding, "Therefore, reforms will have a cascading effect leading to the doubling of the GDP, employment for a crore of people, apart from proving a million white collar jobs."