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Real estate seeks Budget sops from Modi govt

Real estate seeks Budget sops from Modi govt


While Modi government is set to reveal its maiden Budget tomorrow, industry experts and stakeholders, investors are pinning hopes to get sops and policy reforms on it. From much- awaited industry status, tax exemptions, regulatory body, policy reforms, FDI to Housing for All, the developers’ community is sitting with fingers crossed with all eyes and ears on this mega economic event. They are expecting solutions from the government to several consumer-centric issues that have stained the sector for long. Here is what they say - Industry status The real estate sector, one of the significant contributor to India’s economic growth, needs industry recognition. Abhay Kumar, CMD, Griha Pravesh Buildteck Pvt Ltd says, “The foremost requirement that is a necessity for the sector is to be officially recognised as the industry. This will sort many of the problems that mire the industry and streamline and organise the activities.” Regulatory Body There is also a need for a regulatory body that will oversee the activities of the sector. “It will enable companies to adhere to principles and disciplines, bring in transparency and consequently build a credibility that will make the sector investment friendly,” says Kumar. Neeraj Gulati, MD – Assotech Realty Pvt Ltd says, “It is important to overcome the hurdles such as labour shortage, implementation of land acquisition policy, ambiguity pertaining to land title, overlapping of laws and channelization of a streamline process for approvals. This can be done only through a single window to define the steps for adhering to the norms vested with multiple statutory bodies existing.” FDI policy, home loans and interest rates In a bid to bring in this paradigm shift, Manish Agarwal, Managing Director, Satya Group & Secretary, CREDAI NCR says, “the sector will need huge funding which could be met by multiple sources – FDI, cheaper and hassle free loans from banks and forming special funding vehicles such as REITs. The 100 per cent FDI would help in widening the route for accessing fund for development for developers and mobilization which is at a standstill situation. Gulati adds that the scope of the interest rate subsidy for loans for affordable housing should also be amplified and broadened to include a wider price band of homes to benefit buyers, especially those in the lower income group. Industry wants the finance minister to bring down the home loans rates to 8 per cent and inflation preferably taking down to 4-5 per cent. Nikhil Jain, CEO, Ramprastha Group says, “Extending the limit of tax exemption for home loans from the current Rs. 1.5 lakhs to Rs. 5 lakhs is required. Further it is expected that the government will take steps towards reducing the borrowing cost from the banks and introduce policies benefitting the real estate sector. ‘Housing For All’ goal The developers’ community is also looking forward to work with government to achieve its ‘housing for all’ goal. Dhiraj Jain, director, Mahagun Group says, “With the manifesto of a new government in place, that has promised housing for all, we look forward to work with them in achieving that goal. We foresee a government that will create new structural reforms and take firm and decisive policy decisions for real estate sector to propel growth.” “Taking adequate and proportionate measures to increase affordable housing alternatives will not only create a GDP multiplier but also improve the living standards of Indian citizens,” he adds.

Economic Times

Posted on : 10-07-2014