Despite the Narendra Modi government's constant focus on improving housing, real estate is perhaps the only sector of the economy that has witnessed a de-growth in the last four-and-half years.
With the 2019 Lok Sabha Elections fast approaching and the interim Budget 2019 being just a week away, expectations are high on what is in store in the Budget.
Home buyers wish that the government would take steps for the creation of a stressed asset fund to deal with the issue of incomplete projects and provide an EMI holiday to those whose houses have been facing undue delays.
Here enclosed the expectations from the Realty Sector:
Mr. Nakul Himatsingka, Managing Director Ideal Group
The sector is currently saddled with three compelling issues of high inventory, low liquidity and high input costs . I hope the Budget addresses these issues by introducing financial reengineering concepts to overcome NBFC crisis , favourable deductions and benefits in the tax structures , rethinking the GST policy and applicable percentages , reduction in thehome loan rates , focus on infrastructure development and growth . Overall , the Budget , through its policies , should create a snowballing positive sentiment that would undoubtedly effect our sector positively .
Sachchidanand Rai,Chairman – Eden Realty Group
The PMAY schemes for Affordable Housing has provided tremendous boost to struggling Real Estates Sector post long pending economic reforms. It has not only helped the sector survive, but also forced it to understand the importance of the huge "bottom of the pyramid" opportunity which has been left dormant.The push is in the right direction. What is needed is continuation of the policy for at least next 5 years.
Mr Abhishek Bhardwaj, CMO, Shristi Infrastructure Development Corporation Ltd
Our expectation from this year’s Union Budget will be reduction in house loan rates for home buyers with more tax benefits to the consumers. Also, a GST rate revision (for home buyers) is expected by the realty sector in this year's budget. A revised and buyer-friendly GST rate would help boost the realty sector, especially in the affordable housing segment.
By Mr. Sanjay Jain, Group Managing Director, Siddha Group
With the Union Budget 2018 announcement right around the corner, our key expectations are –
· The realty market has been one of the largest contributors to GDP over the past years and progressive actions will help to boost it further.
· If limits can be raised for NBFC for financing projects it will be easier for us, developers in terms of funding.
· A better budget allocation, clarity and faster processing on ground for the CLSS scheme will be appreciated as that will benefit both customers and realtors. It will help customers in purchasing and encourage realtors.
· Multiple interest on subsidy scheme through the Pradhan Mantri Awas Yojana for EWS, LIG and MIG groups has been announced in the past years. This will definitely increase the demand for housing in the market. But we hope that GST rates and interest rates on home loans will be addressed to make housing affordable for everyone.
· Developers are hoping for the grant of an industry status which will boost activity and catalyze institutional funding.
· Single window clearance also needs to be taken into consideration for faster implementation and execution of projects.
· GST levied on under construction properties can be expected to be reduced to encourage buyers.
Overall, the realty players will prefer to wait and watch how the union budget impacts the realty sector.