The New Draft Housing Policy
The new draft housing policy unveiled by the State government on Wednesday may have made buying a house easier, but it comes with no monetary difference for the buyer. For, to compensate for the revenue loss due to ban on including built-up or super built-up area, the builders will increase the rate per square foot of the carpet area.
“To adjust the revenue loss, the builder will simply increase the rate per square foot,” Lalit Kumar Jain, convener, Confederation of Real Estate Developers Association of India (CREDAI) and Kumar Builders chairman, said.
The reason: The built-up or super built-up area adds as much as 25-35 percent of the total area of a flat. So, in actual terms if a person buys a 1,000 sq ft flat, the carpet area is a mere 650-750 sq ft, while the person pays for the entire 1,000 sq ft.
To put it in monetary terms, if a person buys a 100 sq ft flat at the rate of Rs 80 per sq ft, the total cost of the flat works out to Rs 8,000. However, the customer gets only 80 sq ft carpet area with the rest going for built-up and super built-up areas.
Does this really mean any tangible benefits to trhe Home Buyers is any one's guess. However transparency is a issue that would be of debate in the entire exercise. Till then we have to wait and watch