The real estate and construction sector have a significant contribution to India’s GDP. Therefore, it is important to take the desired steps towards the recovery of the entire sector with the help of the budget measures announced by the Finance Minister. Since the outbreak of COVID-19 has severely impacted the sales and construction of the housing industry, the real estate sector is looking forward to the additional measures which will aid in the recovery of the demand as well as eliminate supply side challenges faced by the developers.
Here are few expectations from industry stalwarts from Kolkata about the Union Budget 2021:
Mr. Sanjay Jain, Managing Director, Siddha Group: “The real estate sector has high hopes from the upcoming budget. It is true that the Government made few announcements throughout 2020 that would help the sector in streamlining movements. But in the new Budget, we would like the actions to be taken forward and implemented at the earliest.
We would want the Government to focus and help us with the following –
- Single Window Clearance: Affordable and mid income projects which are stuck at the advanced stages of development required a special window clearance.
- Housing For All: Subsidy on cost effective materials for developing affordable projects.
- Claim Input Credit: Input credit claim should be set off against GST billed in rental case of commercial projects since the rental income is not generated from sale of capital assets.
- Investor Interest: Remove taxation related inefficiencies so that investors are interested to invest.”
Mr. Rishi Jain, Managing Director, Jain Group: “Real estate sector is under pressure mainly because of apathy by certain key stakeholders. Financers being chief among them, even though RE contributes 7.7% of GDP, previous little ground level implementations are happening. Re introduction of GST input, preferred financing status and general decrease of regulations around financing of the sector are on my wishlist.”
Mr. Arya Sumant, Managing Director, Eden Realty: “2021 is going to be the year when the economy revives post the pandemic. Just like other sectors, the real estate sector is also looking forward to the upcoming Union Budget 2021 to not only revive the industry but also pull out the economy from one of its worst falls. The real estate developers are having great expectations from the budget as they want reforms in GST and relaxed tax norms. Moreover, the sector also expects increase in credit take off from the banks to ease of liquidity. Lower home loan interest rates, reduction in stamp duty, and registration charges are a few of the norms which will make a massive difference to the cost of a real estate project and in turn, will boost home buyers to invest in real estate projects. We also look forward to the continuation of CLSS under the PMAY scheme.”
Mr. Abhishek Bharadwaj, Chief Marketing Officer, Shristi Infrastructure Development Corporation Ltd: “Post the lockdown, the economy is slowly looking up. The real estate industry is one the largest employment generators, both direct and indirect, of the country and contributes significantly towards the national GDP. During the pandemic, the government made necessary and timely policy interventions through fiscal support, liquidity infusion, and reform-driven investments to support the sector. It is expected that Budget 2021 will introduce further measures for the existing homebuyers in terms of additional tax benefits and well incentivize new buyers to invest in real estate. The sector also expects the government to introduce a series of reforms and consumption boosters to increasing credit off-take from banks to ease liquidity. Overall, we do hope the government will take measures that would strengthen the real estate sector and catalyze robust infrastructure growth.”
Mr. Nakul Himatsingka, Managing Director, Ideal Group: “The developers are looking for more benefits n incentives from the financial sector in affordable housing, so as to look for better revenue from affordable housing. The liquidity crunch, cascading effect leave a lasting impact on the real estate sector. Developers look forward to a smooth cash flow to prevent from being a timelines defaulter. Customers look forward to GST relaxation for under-construction projects.”
The sector is hopeful that if the government extends a helping hand as well as introduces enough stimulus to improve the sector and the overall economy which will in turn quicken the speed of the recovery. However, with the pandemic still is a concern, one has to be cautiously hopeful.
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