Real estate players of India hope that Finance Minister’s upcoming budget will bring down the costs of finance for the construction sector. Finance minister is likely to announce new Budget which is expected to boost the real estate sector on February 28.
Real estate developers expect that the new budget which the Finance minister of India will announce on February 28 will contain provisions to boost the real estate sector. Builders and other realty players expect the cost of finance for the construction will be brought down by the new budget. They demanded that it will be enabling them to provide housing units at lower costs.
Real estate developers are also hopeful of faster clearance for their projects. Many at a time, the delay takes place due to the longer time taken for gaining the clearance. The delay in gaining clearances leads to delayed deliveries. Further the cost also gets accelerated in meantime, developers claimed. All these affect home buyers onto whose shoulders the additional cost is loaded.
Confederation of Real Estate Developers’ Associations of India’s- (CREDAI) national head Mr. Lalit Kumar Jain suggested tax exemption for amount invested in construction of small houses below 60 sq. m of carpet area. Provision of Special housing zones was another suggestion of the CRDAI chief.
Mr. Jain added that the special housing zones; similar to Special Economic Zones, should be created. Tax exemption should be provided enabling the builders to provide homes at cheaper and affordable rates. Tax exemption should be applicable for inputs used for building 45 sq. m and 30 sq. m houses for the economically lower and weaker sections respectively.
According to Mr. Jain it has been high time for the government to take supplementary actions to boost the real estate sector. He opined that widespread tax incentives will help the real estate sector and added that the home loans must be provided cheaper.
Jones Lang LaSalle’s Anuj Puri said that the real estate sector should be given industry status. Mr. Puri said that realty sector; besides providing countless job opportunities, contributes around 5% of the total GDP.