The real esatte industry was quite hopeful of some relief measures from the Budget 2020 as it has been reeling under severe stress for many years but has not received much from the government today. Here are some reactions from real estate developers:
Niranjan Hiranandani, President Naredco
With economy in doldrums and acute slump in consumption, efforts on demand creation incentives went missing. The labour intensive real estate sector which had pegged hope on additional liquidity infusion, tax reforms and rental housing were overlooked in the budget. Any fiscal measure in sluggish real estate sector could have provided a fillip. Wherein, tax benefits extended to both homebuyers and developers in affordable housing sector will encourage more launches in this segment. Also, abolishing of dividend distract and opening of International bullion market scores eyeballs for global investors to draw investment in Indian IFSC.
Santosh Agarwal, CFO, AlphaCorp
We welcome the announcement of slashing the personal tax regime, cheering first-time homebuyers to invest in the real estate sector. The extension in the transaction values and circle rate is another appreciating step for the sector. Considering the rising demand for affordable housing, the government has announced the extension of one year till March 2021 on the deduction of Rs 1, 50,000 on sanctioned loans. This will encourage prospective buyers to avail of more benefits and invest in real estate. The emphasis given on infrastructural development of the country will help in seamless connectivity and also give thrust to the realty market.
Rahul Singla, Director, Mapsko Group
Extension of additional deduction of up to INR 1.5L on the purchase of affordable homes for one year is a welcome move. The government has also provided tax incentives and enhanced the spending capacity of buyers. These measures will stimulate buyers’ sentiment and encourage them for investment. This will further decrease the inventory size and promote new launches in the segment.
Rajan Bandelkar, President, NAREDCO West
The real estate sector had pinned high hopes on the Budget, as the sector has been reeling under pressure and is on the verge of collapse. The Budget has only two positive proposals for the sector viz. one more year of extension for approval of affordable housing projects for availing a tax holiday and extension of additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans. But the sector’s key demands such as allowing restructuring of loans, extension of a subvention scheme, scrapping of capital gains on the sale of properties, extending the timeline of capital gains, are not met with.
Parveen Jain, NAREDCO Vice Chairman
This is a progressive Budget following the right path in the positive direction with more impetus to Affordable Housing, tax relief for lower and middle income groups and development of infrastructure. The demand in the Real estate sector is expected to increase with the announcement of providing more hospitals, educational institutions and manufacturing facilities and 100 more airports by 2024.
Uddhav Poddar, MD, Bhumika Group
Simplifying the tax slab is a good move by the Govt. and the tax savings to each individual would encourage spending and help spur the economy. Infrastructure push provided in the budget will also help the development in the country. A big announcement is the government confirming to complete the Delhi – Mumbai industrial corridor by 2023 which is one of the biggest infrastructure projects and this once ready will make Indian industry globally competitive. Govt. has pressed all the right buttons to push start the economy.
Manoj Gaur, MD, Gaurs Group
The budget announcements made by Finance Minister seems to be mixed bag from real estate perspective. While, simplification of income tax regime with reduced rates and no exemptions, extension of measures announced for affordable housing by one more year are some of the positives for the sector.
At the same time, long pending demand of the real estate sector has not been met. We have been asking for industry status for the whole sector and single window clearance for smooth functioning, the government did not comment on these requirements.
Navin Raheja, CMD, Raheja Developers
Extension and continuity of sanction and launch limitation from March 2020 to 2021 for availing tax free exemption for developers of affordable housing projects is another welcome step together with Rs 1.5 lakh exemption to the affordable home buyers.
Abhishek Bansal, Executive Director, Pacific Group
Government’s announcement of Rs 100 lakh crore for infrastructural development will boost real estate in tier II and tier III cities. There were many measures that we would have loved the government to address but announcement of infrastructure development is the step in right direction.
Ashish Agarwal, Director, Aditya Developers
Budget was very disappointing for the real estate sector. It has not addressed any pending issues that the sector has been struggling with. The finance minister did not touch upon the liquidity issue, banks not extending loans to real estate, neither any relief has been announced for restructuring of loans.