Subscribe To Newsletter
Connect with us
Totalityre

Blogs

Expectation Of Real Estate Sector From Union Budget 2021-22

Published

on

Budget 2021

The real estate sector is also looking for the re-introduction of the input tax credit for GST.

The real estate industry expects a round of measures to be announced to help revive the real estate sector. The real estate sector needs additional consideration and continuing impetus to boost demand in 2021.

“The stressed asset fund to revive stuck residential projects has been progressing well. Considering there is a well-developed mechanism to prevent misuse and ensure timely completion of projects with proper supervision in this fund, the government should consider increasing the size of the fund. With the increased financial support, the fund can also be encouraged to lend to a wider bouquet of projects till the NBFC sector gets back on its feet.

To avoid the cascading impact of taxes and consequently house prices, the government should use this budget session to refer recommendation on the restoration of GST input tax credit to the upcoming GST council meet. For REIT, the government should reduce the timelines of investment from three years to one year for long-term capital gains taxation; thereby ensuring larger retail investor participation and easing a long-term funding challenge for such projects”, said Mr Shishir Baijal, Chairman and Managing Director, Knight Frank India.

“The real estate sector is also looking for the re-introduction of the input tax credit for GST. Additionally, the sector would receive a big impetus if stamp duty and registration charges are subsumed within the GST and income tax exemption limit for home buyers is raised. These initiatives will help in sustaining the improvement in consumer sentiment which was witnessed in the last three months of 2020.

The sector also looks forward to CLSS budgetary support for the EWS/ LIG as well as the MIG segment. Rationalisation of raw material prices is a must if the real estate sector has to play a pivotal role in ensuring Housing for All by 2022. Increasing cement and steel prices has been a sore point for the sector, which has been seeking government intervention in managing the prices of construction raw materials”, said Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & PropTiger.com.

“The Union Budget 2021-22 will be a major effort towards reviving the economy hit by COVID-19 in the best possible manner. To sustain the sales momentum, relaxation in the Income Tax rules will further incentivize investment in the real estate sector, leading to increased sales. On the GST front, the demand is for GST with input credit benefitting the industry to sustain its growth momentum. Considering social distancing second homes are in good demand, and income tax relief on a second home will stimulate the real estate sector.

Further single-window clearance to speed up the approval process and quicken the project execution is also on our wish list. The budget should also ensure the continuation of existing lower home loan interest rates, easy liquidity for the entire year to encourage home buyers to invest in real estate thereby offloading the unsold inventory”, said Ms. Manju Yagnik, Vice-Chairperson of Nahar Group and Senior Vice President, NAREDCO (Maharashtra)

“In our opinion, the upcoming budget should focus on the revival of demand for real estate. One of the key measures that can be introduced to boost end-user demand would be to increase eligibility limits on home values for affordable housing benefits from the current Rs. 45 lakh to Rs. 60 lakh – this would expand the benefits of affordable housing scheme to more homes.

Till 2017, the entire loss from deemed let out properties (second homes and thereafter) could be adjusted with income from all sources. This incentivized several individuals to invest in real estate from a tax planning perspective. Restricting this limit to Rs. 2 lakh in the 2017 Budget created a drop in investor demand. Removing this limit in the upcoming Budget would go a long way in bringing back lost investor demand”, said Mr Sharad Mittal, Director and CEO of Motilal Oswal Real Estate

 “The upcoming budget is the most anticipated budget as it is expected to provide the real-estate sector the much needed recovery and growth impetus. In fact, the industry is looking forward to see assertive and assistive measures from the government in the budget. One of the key aspects that the budget should address is granting of infrastructure status to the entire real estate sector. This will provide a huge boost. It will lead to financing being available to the developer at lower interest rates, which in turn, can make projects more affordable for homebuyers”, said Mr Rakesh Reddy, Director, Aparna Constructions & Estates.

“It is expected that the Government will take last year’s thought and action forward to come up with the announcements that can be implemented in the short term. “Real estate sector needs the support of the Government wants every Indian to have a house. Escalating costs and delays are the biggest hurdles; Government must step in through income tax incentives to the developers, rightly priced land, availability of land in major cities for affordable housing, and so on. The list of expectations is endless because the goal is large – to provide houses to everyone in the Budget that they can afford and still not compromise on the amenities or the deadlines given to the buyers”, said Ms Achal Raina, COO, Raheja Developers.

“With the pandemic outbreak resulting in a drastic impact on the Indian economy, all sectors have pinned their hopes on the Union Budget 2021-22. Regarding real estate, the government should consider lowering the GST rate for under-construction projects. This move will incentivise home buyers to purchase their dream home and boost sales, thereby contributing to the GDP. Maharashtra government’s move to cut stamp duty is an exceptional example of how it helped revive residential sales. We expect rapid infrastructure development to magnify real estate in MMR. Overall, we anticipate alterations and ease in funding for both developers and homebuyers to further boost real estate market sentiment”, said Mr. Rohan Khatau, Director, CCI Projects Pvt. Ltd. – Rivali Park

“There is a need to boost demand for under-construction homes as well. Developers seek a waiver on GST for under-construction homes. The present GST rate on under-construction properties is 5% minus the Input Tax Credit benefit for premium homes (valued above INR 45 lakh) and 1% for affordable homes (valued under INR 45 lakh). A waiver on GST will reduce the overall burden on developers and make the property value more viable and the pricing competitive”,said Mr. Ankush Kaul President (Sales & marketing), Ambience Group.

ALSO READ: Noida & Greater Noida Shed Unsold Stock By 12% Y-o-Y

 

 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

© 2021 RealtyNXT | All Rights Reserved.