The Union Budget 2012, to be presented by Finance Minister Pranab Mukherjee, is anticipated to provide relief in the form of policy reforms. This is particularly crucial for the real estate sector, which has been under repeated credit pressures due to high interest rates for borrowing.
According to experts, the real estate sector requires government support and further stimulus to overcome the current slump. As a crucial first step, they have advocated for industry status for real estate. This is because the sector significantly drives economic growth and generates numerous jobs across various verticals and associated industries. Experts believe this will also facilitate the sector in raising debt from financial institutions at a much lower rate.
A common demand across all real estate companies is for an industry status to be assigned to the sector in the Budget 2012-13. Additionally, experts are calling for measures to make affordable housing available to a larger section of society.
Samir Jasuja, founder and chief executive officer at Prop Equity, stated, "In this budget, we expect the central government to grant the real estate sector the industry status as that would help the reeling sector raise debt from financial institutions at a much lower rate, which may partly improve the liquidity crunch crisis."