The FIABCI, the Indian branch of the international real estate association for realtors, has asked the federal government to establish a policy of a single licence for brokers to operate across the country, regardless of which state they are from. This will allow realtors and brokers to conduct business across all 50 states with ease, according to the report.
“At the moment, realtors must seek licences from their individual state governments in order to make their initial sales, and they are not allowed to work outside of the territory of the licence they are granted. We at FIABCI have asked the government to enable brokers to operate throughout the nation with only one common licence because the real estate business and small brokers, in particular, have been severely impacted by the pandemic,” says Farook Mahmood Chairman Emeritus & Founder President FIABCI – India, also a member of Global Strategic Planning.
Mahmood also demanded industry status for developers in a letter to Prime Minister Narendra Modi. “For many years, several real estate organisations, including FIABCI, have made repeated requests to the government. An industry status will provide us with a powerful platform from which to address our concerns. The sector provides millions of rupees to the government coffers; therefore, we don't see why we shouldn't be granted industry status.”
The plea to the central government was made because numerous brokers have been under pressure as a result of all-time low business in the previous year and more as a result of a series of lockdowns in several cities with near-zero second sales. As a result, several small brokers have closed their doors.
Another issue hurting India's real estate market is the high cost of GST: "The 18% GST burden has contributed to the already dire situation. Customers do not want to pay GST, thus we, as Realtors, must shoulder the expense. The government should consider a GST exemption or, at the very least, a decrease on first and second sales, as well as brokerage. This would provide a huge boost to the lagging real estate market,” he said.
Source: Indian Express