Builders hail building regulations, seek amendments to NALA Act
Small-scale builders and owners of LIG category residential buildings will benefit the most from the key amendments in the Andhra Pradesh Building Rules, 2017 approved by the State Cabinet, sources in the Confederation of Real Estate Developers Association of India (CREDAI) said.
This means that builders of structures up to G+4 categories or flats under 300-400 sq m will have ample options and relief from some restrictions, thereby helping them join the real estate and urban development sector in cities like Visakhapatnam.
However, builders have expressed dissatisfaction over the lack of clarity on the Non-Agricultural Land Assessment (NALA) Act. As per the statements made by Chief Minister N. Chandrababu Naidu on several occasions, including the third District Collectors' meeting held in March, the NALA Act is expected to be repealed, citing it as a major impediment to urban and real estate development.
'We have come to know that the government is discussing the implementation of 4% charges for land conversion (agriculture to commercial) under the NALA Act, instead of 5% charged by the previous government. We want the Act abolished. We have urged the government to amend the law on land conversion in terms of acres instead of square yards in urban areas. This will be beneficial to urban developers. We are not worried about 4% or 5% charges for conversion,' said a senior builder on the condition of anonymity on Wednesday.
In Visakhapatnam, the real estate sector has an annual turnover of around ₹700 to ₹800 crore. It is expected to touch ₹1,000 crore mark annually. This will be possible if the government accelerates projects like operation of software companies, employment generation and flow of financial transactions. The GVMC and VMRDA should complete the master plan roads and projects as soon as possible, they said.
'We discussed the need for basic completion of roads with the GVMC Commissioner. We are expecting a boost in the real estate sector as the market has been sluggish for the last 18 months. Approximately 10,000 residential units still remain vacant due to no sale. Now, the market is gaining some momentum,' said CREDAI city president E. Ashok Kumar.
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