Confederation of Real Estate Developers Association of India (CREDAI)

As the name suggests, the Confederation of Real Estate Developers' Associations of India (CREDAI) is the apex body of real estate developers in the country. CREDAI's primary objective is to disseminate information on the real estate industry, which is a prominent driver of the Indian economy today. CREDAI works towards creating a more organized, forward- looking and progressive real estate industry.

CREDAI is an autonomous body of over 3500 organized builders and developers from 18 states in the country. The CREDAI was formed not only to organize the real estate industry, but also to provide an ethical code of conduct that is mandatory for all the member builders and developers to follow.

CREDAI’s current vision is to provide affordable housing to the urban population and a ‘slum free India’ as desired by the current President, Mrs. Pratibha Patil.

Roles of CREDAI

• CREDAI’s foremost responsibility is to bring real estate developers on a common platform for interaction with other stakeholders in the industry, like government bodies, professionals and consultants. To this end, CREDAI organizes workshops, seminars, round tables and a large annual real estate conference, NATCON. For consultation, expert opinions and comments on various related subjects, CREDAI engages lawyers, accountants and analysts from time to time. CREDAI also commissions studies when needed.

• CREDAI supports its members in establishing reputations as professional organizations. CREDAI’s Code of Conduct provides clear guidelines for developers to serve customers in an ethical and transparent manner. Members strictly and voluntarily follow the CREDAI Code of Conduct, giving the community credibility and professionalism.Through events, workshops and grievance redressal cells for consumers, CREDAI promotes best practices and efficient construction practices among developers. Through these support functions and through active public relations, CREDAI is dedicated to the cause of improving the image of the real estate developer in the eyes of the consumer, the government and the media.

• CREDAI builds relationships between developers and the government through representations, debates and active participation in all meetings called by the government. CREDAI believes in strength through partnership and has developed a strong relationship with the government through sustained interactions with the Ministry of Urban Development, Ministry of Housing and Poverty Alleviation, the Planning Commission, Ministry of Environment and Forests, and others. CREDAI partners with the government to work on areas of common interest and specifically provides a balanced and integrated industry viewpoint on critical aspects like policy and regulation.

• CREDAI provides important services like raising issues relevant to developers in government and non-government forums, suggesting policy changes, making representations, and giving the developers a unified front. CREDAI also helps members connect with experts who can offer specific advice

In order to maintain integrity and transparency in the realty sector, CREDAI lays down certain rules that need to be followed. CREDAI also voices and represents any proactive policies of the real estate industry in India before the government and other concerned authorities.

Other functions of CREDAI include introduction of new techniques of construction, dissemination of statistical information, promotion of the interests of construction workers and their education, and so on. CREDAI also encourages research in the construction and property development arena. It also facilitates easy financing as it is closely associated with many housing finance institutions and banks.

CREDAI holds a national convention once a year besides several city, state & regional level conferences and technical seminars. Several exhibitions are also organized in major Indian cities like Delhi, Mumbai, Bangalore, and Kolkata along with major world trade centres like Dubai (UAE), Kuwait, Saudi Arabia, London (UK), USA and other places.

Achievements

Environmental Impact Assessment

Over the past few years, CREDAI has worked constantly to reduce the adverse effects of notifications on real estate projects. CREDAI’s efforts have gone a long way in changing things for the better. The government proposed an amendment to the notification in January 2009 and the draft for the same has been placed in the official gazette.

Service Tax on Commercial Rentals

In April 2009, the Delhi High Court struck down the levy on commercial rentals as unconstitutional as the renting of immovable property involved the rendering of no service. The levy had come into force in 2007 and saw massive protests across the country, with CREDAI relentlessly pushing for a rational decision.

The judgment has brought great relief to corporate organizations at this time, when several are facing problems of lowered profits and liquidity.

Special Residential Zones

CREDAI has proposed the concept of Special Residential Zones or SRZs (along the lines of SEZs) as a solution to the housing crisis.

Urban Land Ceiling

CREDAI worked for the abolishment of urban land ceiling and even the last remaining bastions of ULCRA have now abolished it.

Stamp Duty Rationalisation

CREDAI suggested that stamp duty be brought down and several state governments have complied.

Real Estate Financing

CREDAI has submitted a proposal addressing several issues, including the track record of developers, their fiscal practices and loan repaying capacity. CREDAI is pushing for provisions that allow term loans to be rescheduled as well as rollover of existing loans for construction loans. Also, CREDAI has requested for margin money contribution by home loan buyers to be brought down to 15% instead of the present 30%.

CREDAI is also in talks with the government to accord priority status to the housing sector and to help remove the disparity in risk weights so that real estate gets easier access to bank loans.

Other Policy Reforms

CREDAI has also suggested that the states be given incentives to adopt the Urban Reforms Incentives Fund (URIF).

Other Suggestions to the Government

Some other areas where CREDAI is actively engaged in dialogue with the government are:

1. Encourage affordable housing
2. Increase investment in housing construction, maybe through changed ECB and FDI
3. Facilitate land availability
4. Stimulate housing demand by permitting foreign ownership, and giving incentives to buy homes

Two of the coherent members of CREDAI are:

• CREDAI Bengal (formerly City Developers' Forum -- CDF): CREDAI Bengal was founded in 1989.
• CREDAI NCR: CREDAI NCR includes over 80% of the organized real estate builders and developers of Delhi and NCR.

1. CREDAI Bengal

CREDAI Bengal is the apex body of the organised real estate developers/builders across West Bengal. It represents developers/builders across West Bengal by communicating with government authorities for the formulation of proactive policies for this profession. It also encourages developers/builders to increase their efficiency in development/construction activities by introducing the latest technologies.

Vision

Vision of CREDAI Bengal is to be the channel of change; to make the lives of new generations safe, healthy and enjoyable.

Principles behind the Ventures of CREDAI Bengal:

• Identification of the needs of the community in terms of quality housing, social activities, education, entertainment and healthcare where adequate facilities are not available.
• Planning and execution of projects which will be models of sustainable, environment-friendly technology.
• Extending the channel for upliftment of the neighbourhood by bringing affordable modern amenities through economic and green projects.

Purpose

Their purpose is to provide community facilities where there is a need for upgrading of amenities to help meet the aspirations of modern citizens in respect of their living environment.

Intent

The intent of CREDAI Bengal is to bring design and proficiency to upgrade and holistically enhance lifestyles.

2. CREDAI NCR

CREDAI NCR covers more than four-fifths of real estate development businesses in Delhi and other parts of the NCR. Its establishment over the past seven years has brought stability to the industry and its achievements in the local, state and national levels has helped the industry grow at a rate of about 30 percent over the last few years.

CREDAI NCR has emerged as a leading platform for addressing problems of the Real Estate Promoters and Developers of the NCR including those from Delhi and uniting them under one roof. ABL, Aerens Jai House, AEZ, Aeren RJ Group, Ansals, Alpha Buildtech, Ashiana, DLF, Clarion, Unitech, Uppal, Jaypee Greens, JMD, Aerens GoldSouk International, Kamal Enterprises, Majestic, Omaxe, Parsvnath, Raheja's, Shipra, Suncity, Unity Buildwell, Vatika, Vipul, JLLM, Ambit Corporate and Hines are some of the esteemed members of CREDAI NCR.

Main Objectives

• To encourage fraternity, feelings of co-operation and mutual help among the Members of CREDAI NCR.
• To encourage adoption and promotion of fair business practices.
• To promote and protect the general interest of the Members and to maintain liaison with the Government to formulate right policies relating to the trade, industry and profession of real estate development.
• To initiate organized action in the area of building construction and management for increasing efficiency, productivity and quality through modernization and technology advancement.
• To collect and disseminate data, statistics and information on building construction and related subjects of interest to members.
• To formulate expert opinions on matters related to government policies, and to organise meetings, seminars, conferences, exhibitions etc.
• To provide all possible expert advice, guidance and assistance to Members and to make all possible efforts to be a True Friend to the members of CREDAI NCR.
• To provide a platform to interact and promote a concept / product directly to the major players/decision makers of the Real Estate Industry.
• To help an interested party become a part of the voice of the builders and developers industry.
• To provide entitlement to interested parties for discount programs and special benefits.

Scope & Vision

CREDAI NCR & CREDAI can gain mileage both in terms of business and publicity by pursuing pre-defined objectives. Government of India has stated that construction industry is pegged at 10% growth and is seriously considering the following for the benefit of Real Estate Industry

• Rationalization of Stamp duty at 2% and nil for development agreement
• Housing for 2 million in this plan period
• Making land available easily for developers from Govt. Agencies
• Speeding up of Housing Reforms at GOM level
• Interest Relaxation in Capital gains
• Encouragement of FDI up to 50% in this Sector
• IRDA permission to invest 15% of insurance company funds in this sector
• Bringing in "Escrow" a/c system for all HDFC lending like that of infrastructure sector
• Setting up of Equity Fund for Developers both for short & retail funding either through national lending institute or mutual funds
• Establishing Urban Reforms Incentive Fund, City Challenge Fund, Pooled Finance Development Fund - all from Govt. of India