With Budget 2009 concluded and with little respite given to the real estate sector, we ask how it may affect the sector in the future
By Ubaid Parkar
Dharmesh Jain, CMD, Nirmal Lifestyles
There were quite a few issues that were raised. We are happy with the decisions taken on the infrastructure part. We will try and push and see what we can obtain from the Government in the coming months. The interest rates limit could have been looked at. We were also hoping for Section 80 IB to be considered. As an overall perspective, there should have more emphasis on the Real Estate sector really.
Sonesh Dedhia, Director, Dedhia Group
The Real Estate sector was overlooked I believe. There was nothing special in the budget for us. We were focused on many parameters like the rate of interest on capital, income tax benefits, reduction of excise duty on steel and cement. The infrastructure development is definitely important and we hope to capitalize on that. It would most definitely help but general expectations for the real estate sector were not met.
Shabbir Khambaty, Architect, Shabbir Khambaty Architects
The budget is good for the common man but not for any specific industry I am dealing with. I was hoping for a reduction in taxes pertaining to Real Estate and also a reduction in Stamp Duty. Sales in the housing industry and consequent renovation may take a hit because of this. Infrastructure development is definitely a big boost and may create opportunities. But infrastructure development will benefit larger developers who will try and get a piece of the cake but smaller ones may struggle. I do not see any immediate benefits though.
Bharat Gupta, Vice President, Federation of Accommodation Industry of India
There was not much focus on the Real Estate sector. There was hardly anything. It was a flat budget. We were expecting a concession on budget housing and relief to workers in the construction industry as their conditions are pitiable. They need some safeguards. I think the budget has failed. On infrastructure they have concentrated on roads and bridges but housing I feel is a part of infrastructure and should not have been neglected.
Sanjay Paras, Business Development, State Bank of India
We were expecting a lower rate of interest for housing finance and some respite on tax front as well. These things were not considered. There is not much that has changed. We have maintained the same number of transactions on the housing finance front as had before the budget but given that there was no incentive from the budget, the opportunity of getting in more transactions has been lost.