Act on infrastructure: builders

Foreign real estate funds have set their eyes on Bangalore. But, Karnataka government has to get its act together on the city's infrastructure to attract investments.

That was the opinion of real estate developers at the Karnataka Ownership Apartments Promoters Association (KOAPA)-sponsored Reality 2005.

Addressing a press meet at the Reality 2005, Ramani Sastri, vice-president, Confederation of Real Estate Developers Association of India, said about 20 international developers are entering India to invest in real estate projects.

From January, investments have been flowing into India through Singapore and Malaysian companies like Jurong, Kepple and CPG.

"With Bangalore's realty market being the most professional and with the return on capital being the highest in the country, it is likely to see 7-8 JVs in a few months," he added.

Despite more apartment units expected to come into the market, the price of apartments is not likely to fall. "Right now, the price of steel has gone up from Rs 18,000 to Rs 30,000 per tonne, cement prices are fluctuating, land owners are getting greedy and the tax on transport sector up cost, prices would go up," said Sastri.

Speaking on the occasion, M R Jaishankar, convener of KOAPA and managing director of Brigade Group, said the state government should lower value added tax to facilitate more people in buying apartments.

Currently, a home buyer is burdened with 20 per cent plus tax through three levels: stamp duty 9.56 per cent, sales tax 12.5 per cent and service tax 3.57 per cent, he added.