Indian real estate participants are hopeful that the Finance Minister's approaching budget will diminish finance costs for the construction sector. The Finance Minister is anticipated to unveil a new Budget on February 28, which is expected to provide impetus to the real estate domain.
Real estate sector wants Financial Minister to lower the financial costs.
Real Estate developers anticipate that the new budget to be declared by the Finance Minister of India on February 28 will incorporate measures to stimulate the real estate sector. Builders along with other realty stakeholders are trusting that the cost of finance for construction activities will be diminished through the new budget. They have requested that such steps would enable them to offer housing units at diminished costs.
Real estate developers are also optimistic about achieving faster clearances for their projects. Quite often, delays arise because of the lengthy clearance processes. These delays, in securing necessary approvals, subsequently cause the delayed deliveries. Further, costs escalate during this interim period, as affirmed by developers. All such issues affect home buyers, as they bear the burden of these additional expenses.
The Confederation of Real Estate Developers’ Associations of India (CREDAI)’s national head, Mr. Lalit Kumar Jain, has proposed tax exemptions for funds invested in constructing small houses below 60 sq. m of carpet area. Mr. Jain suggested the provision of Special Housing Zones.
Real estate sector demands speedy clearance to provide homes at lower rates to the buyers.
Mr. Jain elaborated upon the concept of special housing zones, asserting that they should mirror the structure of Special Economic Zones. Tax exemptions should be introduced to enable builders in offering homes at more economical and accessible rates. These tax exemptions should encompass inputs employed in constructing houses of 45 sq. m and 30 sq. m, intended for the economically disadvantaged and weaker sections of society, respectively.
According to Mr. Jain, it is imperative for the government to institute supplementary actions to invigorate the real estate sector. He voiced that widespread tax incentives would substantially benefit the real estate sector and stressed the need for affordable home loans.
Jones Lang LaSalle’s Anuj Puri advocated for granting industry status to the real estate sector. Mr. Puri highlighted that the realty sector not only generates numerous job opportunities but also contributes approximately 5% to the overall GDP.