Real Estate Sector Anticipates Relief in Upcoming Budget 2012
The Indian real estate industry is cautiously optimistic about the forthcoming Budget 2012, expecting significant relief for affordable housing buyers. Given the sector's substantial contribution to the country's economic growth and employment, stakeholders are eager for the government to grant it industry status.
Lessons from Budget 2011-12
The previous budget, despite its promises, failed to effectively boost the housing sector. Insufficient measures were taken to support developers and customers alike, leading to minimal gains for the industry.
Expectations from Budget 2012
Tax Revisions for Affordable Housing: Shailesh Sanghvi, Director of Sanghvi Group of Companies, emphasized, “We expect a revision in tax for affordable housing projects to address the country’s acute housing shortage.”
Priority for Banks and Affordable Housing: The government is urged to prioritize banks offering concessional rates to the common man, simultaneously highlighting the importance of affordable housing.
Enhancing Interest Subvention: There are suggestions to increase the interest subvention of 1% on home loans from Rs 20 lakh to Rs 30 lakh, making housing more accessible.
Extending IT Act Benefits: Ajmera stated, “The budget should extend the existing benefit of Section 80 IB(10) of the IT Act for developing affordable housing, given the country’s huge tenement shortage.”
Government’s Role and Expectations
Developers consensus is that the government must implement mutually beneficial policies for both developers and buyers. As per industry hopes, Finance Minister Pranab Mukherjee will present a budget that brings joy, comfort, and relief to all sectors, including the eagerly awaiting real estate industry.