The Union Budget is just around the corner and the real estate industry is looking up to the government to provide some support by fiscal measures and tax rebates to bring the industry back to its feet. The industry which has been reeling under a heavy slowdown for the past many years is urging the government to expand the definition of affordable housing so as to include some of the categories of properties in metros. It is also asking for allowing higher limit of Rs 5 lakh as interest deduction on home loans to individuals. Here is a list of the demands by the industry:
Manoj Gaur, MD, Gaurs Group
We think that the government in this Budget will take a call on single window clearance, which is long pending and is the best solution to expedite the development process. If not single window clearance then the permission granting authorities should be brought under the ambit of RERA. This would make sure that the permissions are granted on time and the developers should not bear the brunt for any delay on the part of authorities.
Pradeep Aggarwal, Founder & Chairman, Signature Global
Affordable Housing sector has been given the infrastructure status but the implementation has not been up to the mark. We hope that the announcements that were made last year regarding the investment towards infrastructure will get a clear picture for implementation. The Budget should also address the issue of making cheaper land available in main cities for the development of affordable housing.
Gaurav Gupta, President, CREDAI Ghaziabad
We are looking forward for the industry status to the real estate sector along with steps being taken in the direction of single window clearance under ease of doing business will tremendously help the sector. Also, it will be a perfect situation if the GST is revised for construction materials such as cement to make them more affordable. First of all, the income tax deduction under section 24 must be increase up to 4 lakh.
Mohit Goel, CEO, Omaxe Ltd
Due to the downturn in the market amid NBFCs crisis, lack of confidence amongst homebuyers and banks wary of lending, we urge the Hon’ble Finance Minister to announce a one-time loan restructuring for the sector. This will speed up construction and once construction begins in a full swing, not just consumer confidence but also sales and overall economy will see an upswing.
Dhruv Agarwala, Group CEO, Elara Technologies
Immediately, the biggest challenges confronting the real estate sector are liquidity and demand. There is an urgent need for a one time loan restructuring for the sector. This would provide significant relief to developers and lead to faster completion of projects. We hope that the Hon’ble Finance Minister announces that measure in the upcoming budget. On the other hand, to push demand, the government should consider lowering the tax burden on individuals to put more money in people’s hands and also consider providing an additional tax deduction on purchase of a second house.
Vikas Bhasin, CMD, Saya Homes
The list of expectations from this budget is long including more fund allocation for PMAY, reduction of GST on building material, etc. Apart from the usual real estate segment, the budget should especially focus on the commercial segment, which has the potential to attract foreign investment and FDI.
The finance minister has to balance fiscal prudence and the urgent needs of the sector. Government should resolve liquidity crisis.
Dhiraj Jain, Director, Mahagun Group
Sector has high hopes from the Budget and it is expected that the FM will take care of the liquidity as well as situation of speedy delivery of projects. This can be done if FM comes with specific plan to provide funds to the real estate sector. Mere announcements might not work as the need is timely implementation of measures to control the situation. A decision regarding Input Tax Credit, cost of raw materials for real estate, availability of cheaper land, etc, will go a long way in addressing the situation at hand.