Realty players for framing guidelines to check overpricing

Mumbai, Jan 16 (PTI) Real estate market participantsfeel that there is a need for framing standards of valuationof properties to check overpricing.

They also said that there is a need for a controllingauthority to check the pricing rather than just setting up aregulatory authority.

Maharashtra Chief Minister Prithviraj Chavan has saidthe government is planning to constitute a regulatoryauthority to control the skyrocketing property prices besidesensuring transparency in the system.

"The real estate sector is already overrated...if anew regulator is constituted, it will result in less supplyand lead to further hike in property prices. Government needsto frame standards for valuation instead of constituting acontrolling body," real estate solutions provider Cushman andWakefield India''s Executive Director (Occupier Services)Arvind Nandan here.

On the Chief Minister''s recent statement on thepolitician-buider-bureaucrat nexus, Niranjan Hiranandani,Chairman and Managing Director of leading real estate firmHiranandani Group, said there was an urgent need to marryinfrastructure and development.

Chavan had recently admitted that there existed nexusbetween the politicians, bureaucrats and builders, whichneeds to be tackled adding that a regulator could ensuretransperancy in the system. .

"The nexus and lobbying (between the politicians , builders and bureaucrats) is just an excuse given by thegovernment," Hirandani said.

For development, the state should ensure that itprovides infrastructure and takes steps to remove all thehurdles coming in its way. There is a need to marryinfrastructure and development," Hirandani said.

He also emphasised that the government should changeconstruction norms like FSI (floor space index) and cut downthe number of permissions required to be taken to developaffordable housing.

The state should also work towards cutting red tape,Hirandani said.