As discussions surrounding the Union Budget 2012-13 gather momentum, the real estate sector in the city has also stepped forward with its anticipations. The focus primarily lies on increasing the subsidy on interest rates for loans related to affordable housing. Additional requests include granting industry status for taxation and construction as well as a relaxation of FDI regulations, permitting up to 51 percent investment in multi-branding ventures. The industry has expressed optimism regarding a budget that addresses these issues.
Sushil Mantri, the president of CREDAI, Bangalore, articulated that "The Indian real estate industry experienced a roller-coaster of highs and lows throughout 2011. Previously, a one percent interest rate subsidy was provided for loans aimed at affordable housing. Expanding this subsidy would greatly benefit home buyers, particularly in the mid and lower income brackets."
Moreover, Sankey Prasad, chairman and managing director of Synergy Property Developments Services, emphasized, "The Indian real estate sector, particularly housing, requires substantial governmental backing for continued progress. It is vital for the government to contemplate a restructuring of interest rates on home loans to encourage broader access for the lower and middle-income demographics. For home loans under Rs 25 lakh, interest rates should be lowered, gradually increasing as the loan amounts rise."
Additionally, the experts have underscored the necessity of addressing significant concerns impacting the real estate industry.
Sushil Mantri further remarked, "The real estate sector eagerly anticipates the Reserve Bank of India's intervention to rein in inflation, which has negatively impacted our industry. If we achieve a relaxation of FDI regulations up to 51 percent in multi-branding, it will significantly enhance the growth trajectory of the Indian retail landscape."