The real estate industry has a lot of expectation from the Union Budget 2018, to be presented by Finance Minister Arun Jaitley in the month of February 2018. A Real Estate Regulatory Authority has helped the buyers to gain the confidence for purchasing any assets and it has also added transparency in real estate industry. The realty market has gained the momentum after the government’s initiative towards Affordable housing scheme and to carry forward this momentum for the betterment of the industry, here are some few expectations by realty players for the upcoming budget.
Kishore Bhatija, Managing Director, Real estate development, K Raheja Corp said, “2017 was certainly a year of change with the implementation of several reforms which brought in consolidation and transparency in the sector. In 2018, we look forward to a budget with amendments that will boost the growth of the economy and that of the realty industry. Certain key areas like industry status to the full real estate industry, streamlining taxation norms for REITs, rationalisation of GST, stamp duty reduction/uniformity and implementation of single-window clearance need to be addressed.”
The expectation of Real Estate Industry is too high form 2018-19 Budget and these expectations cover whole industry.
Commenting on Affordable housing, “The expectations from the Union Budget are substantial, as is every year. For affordable housing, there is a notable point for the Government to consider. As things stand, despite its far-reaching scope, the PMAY subsidy is unable to reach a large portion of home buyers who are migrating to the peripheral areas of metros and other big cities in search of jobs. This is largely due to their ownership of pukka houses, in many cases ancestral homes, in their smaller hometowns. The affordability of this home buyer thus reduces considerably, as he/she must be a first time home buyer to be eligible for the PMAY. Almost 50-60% of the housing demand goes untapped by the subsidy due to this. It would be interesting to see if the Government would address this subject and expand the reach of the subsidy, thereby accelerating its mission of Housing for All.” Said Ashwini Hooda, Deputy Managing Director, Indiabulls Housing Finance Limited.
The introduction of the Real Estate Regulatory Act as well as demonetisation last year has been extremely disruptive for the real estate sector and the previous budget 2017-18 was more towards on infrastructure.
‘’Looking at the upcoming election in mid of 2019, the feelers doing the rounds indicate that the Union budget 2018-19 is going to be more beneficial for the poor & Middle segment citizens in the country”. The government will hopefully look into reducing the income tax slabs and various other taxes, benefiting the common man. Bring back the lost luster to Fixed Deposits,” Ashok Mohanani, Chairman Ekta World & Vice President NAREDCO West, said.
Shantilal Kataria president Credai Maharashtra, listed down several points, appealing to Housing Minister, Hardeep Singh Puri regarding GST rates in the realty market, PMAY, subsidy, ready reckoner, etc.
“We at Credai Maharashtra & Credai national met the hon. Housing Minister Shri Hardeep Ji Puri & secretary finance & revenue Mr. Adhia ji in Delhi for our demands & expectations About real estate sector in a budget,” he said.
1) In last year’s budget infrastructure status was declared to affordable housing but still not implemented in the true sense by RBI/ banks – it should be done on priority.
2) PMAY subsidies should be directed through nationalised banks in addition to Hudco, NHB.
3) Some of the income tax provisions should not be co-related with ready reckoner/ circle rates of states. There should not be an additional burden of tax on flats sold below ready reckoner rates.
4) Increase PMAY subsidies amount by at least 50% for the benefit to end consumers.
5) GST should include state stamp duty or reduce GST rates to 6% (like earlier service tax+ VAT (4.5% + 1%))
6) Taxation on unsold inventory should be removed.
7) Appropriate changes & incentives for consumers & also developers in income tax act to increase the supply of affordable housing in the entire nation.
8) Concessions in the interest of housing loans to boost housing sector in totality.
9) Special benefits to women in PMAY subsidies.
10) Provide more incentives to first time home buyers.
11) To overcome the impact of reforms like GST, Rera & demonetisation, this time expectations are high from finance minister in a budget , to announce encouraging announcements for strengthening & improving real estate sector, in turn increasing GDP growth.